Bullboard - Stock Discussion Forum Gear Energy Ltd T.GXE

Alternate Symbol(s): GENGF

Energy Oil & Gas E&P

Gear Energy Ltd. is an oil-focused exploration and production company. The Company carries on the business of acquiring, developing and holding interests in petroleum and natural gas properties and assets. Its operations are located in three core areas: Lloydminster Heavy Oil, Central Alberta Light/Medium Oil and Southeast Saskatchewan. The Company is also engaged in focused on improving oil... see more

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Gear Energy Ltd > Last Year's Strategic Review by GXE

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Post by greyowl on Dec 22, 2024 4:57pm

Last Year's Strategic Review by GXE

Gear opened thier dataroom during last year's Strategic Review that generated some interest but no deal - (GXE share price was double what it is now during that review > 90 cents).

It certainly is interesting that the GXE board were singing in sopranno about Gears propects back then. Why Baritone now. What if one of the organizations that had a look at them is re-considering given the new low price on the stock? Will the board learn to sing in sopranno again if one of the other operators in the area come in with takeover offer much better than the current one? Would board/managment be willing to settle only with thier termination clauses - (i.e no NewCo) or will thay solicit the shareholders to reject a superior to Cenovus deal? Makes you wonder.

Excerpt from the 2023 GXE Srategic Review News Release

"Gear’s Board of Directors (the “Board”) have commenced a formal process to explore, review and evaluate strategic repositioning alternatives with a view to enhancing shareholder value (the “Strategic Process”). With Gear’s top tier cash flow generation ability, strong balance sheet, deep inventory of both drilling and enhanced oil recovery opportunities, and a material tax coverage position, the Board and management believe that the Company is ideally placed to undertake this process. Although there have been no formal proposals received, Gear has been approached by a number of parties interested in potential transactions"

Link to Strategic Review Initiation News Release Sep. 27 2023

https://boereport.com/2023/09/27/gear-energy-ltd-announces-initiation-of-a-strategic-repositioning-process-and-an-operational-update/

Example: Strathcona Resources (SCR) operates in the Loydminster Manville
They are much biiger than Gear. thet had this to say in thier latest presentation about thier Loydminster operations:

"A low risk free cash flow engine that keeps gettin better"

"Decades into most of out fields lives, we keep finfing ways
to improve performance"

"2025-2030 focus on consistent low-risk free cash flow generation"

"Emerging multi lateral opportunity targeting Manville stack"

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