Another way to look at this is that present holders will be getting 1.2c per share back soon, post the small shareholders clean up, which is essentially a very very small buy-back and admin saving.
At the 8.5c price now, you're effectively paying 7.3c for the Blackspur assets as it's a capital return, which is a rough market cap of $45m. Now the main question becomes, is Blackspur worth more than $45m? On a range of metrics it still looks like it is.
But with Montney gone, I don't have too much interest in this as a pure play producer. The big sell off on Friday plus comments on here shows that is not an uncommon view. I do think it has been oversold, but do I want oil exposure here vs the oil universe and the honest answer is probably no, which means the new marginal investor is either a deep value investor or one looking at a M&A play.
I will state that I think Blackspur will be sold within the next 1-6 months, particularly if oil can hold above US$80. If management are not lying and that it was based on EV/EBITDA multiples then that implies >100% upside. That now becomes the investment thesis plus hoping they can cashflow fund distributions with a leaner focused approach.
My biggest worry though is that it could mean management and the board doing themselves out of a job, which is aligned with shareholder interests but potentially not their own. Self interest is a key driver of behaviour. I do say potentially as Glenn has a few shares and it's probably a good way to exit as he can't really sell without killing the share price and sending the wrong signals vs his recent buy but I don't really have faith in management.
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Last
0.9¢ |
Change
0.001(12.5%) |
Mkt cap ! $5.700M |
Open | High | Low | Value | Volume |
0.8¢ | 1.0¢ | 0.8¢ | $100.8K | 10.85M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
2 | 772763 | 0.9¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
1.0¢ | 2713985 | 7 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
2 | 772763 | 0.009 |
10 | 14622624 | 0.008 |
13 | 23827142 | 0.007 |
6 | 960000 | 0.006 |
11 | 4212000 | 0.005 |
Price($) | Vol. | No. |
---|---|---|
0.010 | 2713985 | 7 |
0.011 | 1250000 | 1 |
0.012 | 3500000 | 1 |
0.015 | 130000 | 2 |
0.016 | 50000 | 1 |
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