Post by
kavern23 on Mar 09, 2023 8:53pm
Has to be...
Has to be more to the story here with this share offering.
Did a small potential deal fall into their lap that was unexpected?
I expect 2023 will be the year some of these smaller private companies in cardium will want to get out, especially ones that havent drilled in years but have good drilling locations.
Realistically isnt bank financing available for the really tiny private outfits. And small guys cant afford one subpart well or t*ts up.
Sansum energy has a land black directly beside YGR iN Chambers. Probably around 400-500 BOE a day. Majority is 2020 and 2021 cardium well. Sansum drilled nothing in 2022 and look to have no drilling licenses for future. I mean what are the options for them? Running a drilling rig program like YGR does and having an internal OFS team, YGR can develop Sansum land cheaper than they can.
Maybe a deal to come for YGR like this and extra reason to fortify the balancesheet while market still offered that ability.
I mean Journey Energy financials came out yesterday. Look at Journeys FCF ability and fact it has old assets that don't need much drilling...why did Journey still do a share offering? Cause more opportunities are likely to be had in 2023.
YGR had a really good year in 2022 financial, has to be more to the story here.
Comment by
cfliesser on Mar 10, 2023 8:08am
Presentation has been taken down....