Bonterra Energy Corp T.BNE

Quite the volume over here

[Tim14235]

Volume is non-existant without Fink buying.  How are all the investors that were here for the div going to exit?  Or maybe they just wait a few years and hope oil is still here.  Quite the opportunity cost.

There is another opportunity.  The opportunity at your door step with a premium on your shares and likely a liquidity event to allow you to exit.

[snowshoedb]

if oil doesn't exist in the future... then the obsidian offer (insult) is no better. If Obsidian weren't so overloaded with Asset Retirement Obligations (ARO) and had a permanent Management Team who was committed & had the financial depth to execute  on the Cardium Champion Vision... then the offer would be interesting. But since OBE lacks in management commitment and management

[Tim14235]

At least it would be an exit.... The ARO is coming down hard with SRP grants.  And much of it is infrastructure plants, and pipes that are not going anywhere anytime soon.  ARO does not preclude you from paying a div unlike debt.  OBE is also compensating for the excess ARO.  Look at FFO and production and we are contributing the lion share.  We also bring Willesgreen

[Hendrick3]

Why doesn't OBE go after InPlay instead of BNE it's true that you would get about half the production but you would pay less than 1/4 of the price. Doug Bartole and his management team are excellent operations and technical leaders. You would add only $60 million to your debt I stead of 300+ and you would have the perfect management team to take th combined entity into the future. BNE is

[Tim14235]

InPlay is a tougher target because of near 40% of the shares are locked up by management and insiders.   Mgmt would be hesitant to give up their income.

[Hendrick3]

How would they be giving up their income if they take over some of the executive suites? I thought we were looking for a new CEO as well. You could offer a heck of a premium on their shares and still come out much less leveraged and diluted than with BNE. In addition management holds less than20% of the company from my recollection. There is a large holding by an insider but possibly they would

[Tim14235]

Good points.  We would take them as mgmt.   The insider ownership is reported in their latest presentation.  I wonder about inventory.  Have to look at BNE and IPO reserves when they come out

[kavern23]

I think OBE is most interested in BNE as OBE doesn't need drilling locations at all....OBE needs the old vertical wells BNE has that don't decline and are under waterflood. If OBE is successful in buying BNE...they likely will shut down all BNE pembina drilling...let BNE assets decline down to 7-8k BOE a day and use the stable cashflow from BNE assets to fund another drilling rig to run