Why would a buyer pay millions for half of Montney when they can...

Why would a buyer pay millions for half of Montney when they can add a bit more for not only the other half but also blackspur.

I think there is a higher chance we get bid for all of CE than transacting on Montney.


Anything sub 30c is dirt cheap for the lot and a 20-30% premium on top might be enough to convince shareholders to make the deal and still make a lot of sense for an existing producer to add growth. Most potential buyers would be arbitraging their valuation metrics down as its very cheap even at say 40c. It's also a fast way to take advantage of current oil prices without the lag of development. Also to grow production while strictly keeping to "ESG" pressures as they are existing developments.

We are sitting ducks at this price and I can't imagine any bidder would not think of the above first before making an offer? Perhaps the sums are being done?

I never invest on the prospect of a takeover because that would be a lousy strategy. However, with Montney in the market and some very well connected brokers out their pitching this deal, I think it would be on a lot of minds....