Post by
nozzpack on Oct 20, 2020 11:28am
Close to $200 million Cash Objective
VLE now has $63 m cad in cash and HWX $112 million CAD for a total cash position of $175 m cad in cash and no debt.
I formly believe Another will soon join the group and boost cash to over $200 m
The core of the current HWX management team has built and sold three prior franchises, and together with VLE are in a position to take advantage of the pandemic induced oil price collapse which has served as a catalyst for the next consolidation phase that is necessary to bring a fragmented and under-capitalized Canadian basin to a more rationale and sustainable level.
This has created an opportunity for well-capitalized buyers to target operators that while holding desirable assets, and relatively clean capital structures, do not have access to sufficient capital, as such the value proposition for shareholders of these entities is challenged.
With a rock-solid balance sheet, and solid institutional sponsorshipon both sides this new entity will be a strong contender to capitalize on this consolidation wave, ultimately creating a formidable operator in the Canadian oil/gas patch
Comment by
waitingstill on Oct 20, 2020 12:39pm
Sorry nozzpack, Sean said explicitly that they are not looking in NA. Will have to wait to find out what they are targeting.
Comment by
firstworld on Oct 20, 2020 1:16pm
+1 no one wants Candian gas plays they cant even get LNG terminals built and have pissed off the biggest Asian customer China, who is now doubling Russian pipeline capacity. Canada O&G is a pure welfare case now. quote=waitingstill]Sorry nozzpack, Sean said explicitly that they are not looking in NA. Will have to wait to find out what they are targeting.[/quote]
Comment by
nozzpack on Oct 20, 2020 1:43pm
Sean is only a minor shareholder. We own the company and if an offer comes for a premium to our cash value, it's up to us not Sean. The Middle East is much less safer than North America . So let's see how this unfolds..
Comment by
waitingstill on Oct 20, 2020 1:48pm
What you say is true about shareholders but he is the one that sees the offers and the current Board is the one that makes the decision. It is too many months away for a shareholder revolt to have any effect. Things will be long done by the time that can be arranged imo. But I am just one small shareholder.