Paramount Resources Ltd T.POU

What to do with those pesky NVA shares ...

[Konaboy]

Let's see ...

1) sell on open market - no good, NVA would tank, badly with 17% in liquidation.  Maybe a very slow trickle?
2) sell back to NVA - a buyback - don't think they have the cash, would not take on debt to get them, it could only be a slow trickle
3) find a buyer for the whole wagon - does Eric have a couple of brothers that could buy them out, or could he start up a few new funds
4) wait for buyout offer for NVA - hmmmm, dunno overall how atractive it is as part of the LNG highway
5) partner up and make a run at them ourselves

Am I missing anything here that gets the weight off our back, without killing NVA?

[MyHoneyPot]

If NVA are going to keep doing buybacks, you can just them let them do that and reduce the float, increasing your ownership and the value of your shares. Maybe they want pou to buy them.  Or maybe POU knows someone that want to take out NVA and POU can sell their shares at a premium.  In any case NVA will be 83000 boe a day next year, likely exit at 88,000 boe.  If they average

[Konaboy]

Ok, so narrowing down exit strategy to a) POU is an NVA takeout participant, or b) POU sells as part of another takeout bid.  Both reinforce that it's not a liquid asset! With NVA buybacks, POU will soon be pushing the 20% threshold.  Implications?

[RookieReturns]

Instead of a full takeover bid could they do an asset transaction? Does NVA have enough assets that might be of interest to POU?

[MyHoneyPot]

Implications are the following, the value of NVA will be significantly higher especially with the limited float, and the quality, and volumes associated with their production. ( Over 20% increase in production) Eariler this year POU acturally did sell off a portion of the NVA assets, to fund a tuck in acquistion at Karr. Otherwise they would own a greater percentage of NVA. Clearly you can not

[Vince64]

The little boys are waiting, and waiting.