Gear Energy Ltd T.GXE

Suppose To Follow Oil

[WONDER1STOCK]

Can't believe people selling at .58 cents. GXE is making some big cash here and with pil to remain high the share will double. I bought some more today at 1.60 and will hold my shares to get a double.

[Roscoe747]

The dynamic for the oil patch is 'grow or die'. In this bull market that means either sell to a large, well capitalized producer or buy land or production and 'drill, baby drill'. IMO, the smaller producers do not have the enthusiasm for growing due to the antagonistic political climate. The smart choice is to sell out, perhaps keeping some moose pasture for an Exploreco hived off

[Wizzard]

i assume the thesis for this train of thought is as  Leucrotta Exploration Inc did

[Roscoe747]

Only in the sense that there will be a consolidation in the industry as the long-dated return of capital comes with increased political risk. Execution risk can be mitigated, political risk, however cannot. The illogical antipathy to hydrocarbon resources shown by eastern elites requires the deep pockets of larger entities to counter. Micros aNd what's left of the juniors will be reduced to

[masfortuna]

I am not sure that we are there yet. Companies have been focused on cleaning up the balance sheet.  They have reduced capital expenditures and would be loathe to increase debt at this point EVEN with oil at $100.

[Roscoe747]

Exactly. Larger producers can develop these junior resources without impairing their balance sheets The impending end to the hydrocarbon age has implications for the majors as far as investing in large, long-dated fields with multi - billion $ investments. Not only are these discoveries more difficult to find, they are also more technically challenging, hence more expensive to fund. It may be a

[masfortuna]

fair enough BUT we are not there yet.

[bubba9]

As long as oil is high, this is long term money in the bank. Short term pain...

[masfortuna]

Not worried.  I have been here since .70'ish ;) Mas

[Roscoe747]

Yeah well, as there is no indication of a deal until it's announced, whether we are there or not is mere speculation, as is whether or not the assets are a fit or even if GXE will entertain an offer. The overall accumulation of fact as opposed to idle speculation points to ~ 81 million shares trading hands in the past month at prices above $1.50. A good indication of interest in GXE. As

[navajojoe]

This post has been removed in accordance with Community Policy

[Roscoe747]

Still true. If it is marketable. Middling assets, big tax losses and long term cash flow may be attractive to an 'income trust type' producer. Whats your point?