Hi swami2, Buying a producing asset is going to be costly. ARN's...

Hi swami2,

Buying a producing asset is going to be costly. ARN's package of about 1200 boed of low decline light oil is expected to fetch significantly north of 100M. Basically MPO can't afford it. Right now, there is a lot of money flowing into Canadian junior energy. This is after a couple of years of undervaluation.

So it's hard to find good deals. On top of that, this management team doesn't have the exploration expertise for me to want them to take random shots. To be frank, I don't want this board of directors doing anything except conserving every last dollar of cash. Their track record is horrific. I hope each senior member of the board has stopped taking any compensation, given how they failed to protect shareholders.

So I think the best option is some kind of merger, where our cash balance produces immediate returns for us. There might be other options aside from ARN, though that's the one that jumps to my mind.

Nothing can happen now, however, until we see what happens with our asset sales. Once we get some idea of how much they can raise (and some update on the lawsuit), we can push for the merger.

Best,
Wiggling