Fairborne Energy Ltd T.FEL

Sold to Bonavista

[factsfinder]

                                                       for few pennies on the dollar                                         

[mjh9413]

Not just Bonavista as 8900boe sold and Bonavista taking 6900boe as I see it. Maybe wrong. It will be interseting how analysts and the market value this play now but FEL definitely had to do something to strengthen its balance sheet in light of continuing weakness in nat gas (Even Isaac couldn't lift natgas: it even fell more!!). So, 80% oil flowing 4500boe with exit possibly over 5000. Line of

[mjh9413]

Corrections: It is 8700boe current prodn being sold it is 25% oil and liquids in the remaining 4500boe but the oper netback improves from about $13.25 to $15.50 post transaction, presumably elimination of interest costs per boe and better margin on less gas. Will have to wait for the market to respond as I see 20cent or so cfps post transactions which might make pre-halt level a little high..or

[factsfinder]

                                                                    BAD BAD DEAL                                           &

[packerdriver]

yep...apparently.....didn't help BNP's SP much though.....new shares at 16.50 to pay for it (and then some, nobody knows what they gonna do with the rest of the money).....dropped the sp down to that, from over 17 dollars before......nobody wins in the gas game these days...I guess