TEG - Its all about the oil price, page-12

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06/09/16

15:02

Post #: 18965418
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Originally posted by Bilo70 ↑

Q - of course the amount of shares matters - how can it not? The fact is that TEG has no significant liquidity in its balance sheet - hence it will need capital (as everyone does) to invest and take advantage of any oil price rise. BPT (according to that analyst) has around $500M of liquidity - not to mention significantly more cash flow. Drawing a comparison between the two is ludicrous. BTW - I like BPT as a long term East Coast gas play.

The issue is (and will always be) that for TEG to raise an amount of money that makes a difference, it will need to either do it at 0.001 OR consolidate and raise at whatever the market values it at - which at the moment is somewhere between $3.5M and $7M. They clearly thought this deal would deliver the leverage you are talking about - but the market has decided otherwise.

In some ways you gotta respect the Board at EXR who were obviously trying to squeeze AWE as much as possible on the deal and get the asset for cheap cheap. The TEG guys obviously swooped in with their cash and the new CEO of AWE jumped at the chance to sell for a higher price with no strings attached. Trouble is now - TEG has no money! Its interesting to note that originally AWE insisted EXR have $3M in working capital post deal - yet that requirement disappeared with TEG. Can't imagine that went down well with the JV partner!

Anyway - this asset is probably good long term - but it needs investment (and soon) to keep it alive. Maybe TEG should merge with Pilot who look like they have picked up the surrounding permit (for free!) from Murphy. At least the Pilot guys seem to have big Chinese money behind them and also appear to have a decent group of O&G professionals running the show. Or maybe they are just playing a waiting game......who knows.

Thanks for the tip on EXR Pumper - you might be onto something there.....! Let's see if they raise their money.

DYOR

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Biko70. 'Just for interest re effect of POO' NEVER intended in ANY way to be a comparison between TEG and BPT. Ludicrous even to think that.
And, management has told us in no uncertain terms that they DO have plans and that all will be revealed at the AGM and IMO, that WILL include both corporate and structural changes (quite ambitious I expect).

TEG Price at posting: 0.2¢ Sentiment: Hold Disclosure: Held
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(20min delay)
Last 0.6¢		Change 0.001(20.0%)		Mkt cap ! $12.48M

Open	High	Low	Value	Volume
0.5¢	0.6¢	0.5¢	$2.824K	531.2K

Buyers (Bids)

No.	Vol.	Price($)
8	7980274	0.5¢

Sellers (Offers)

Price($)	Vol.	No.
0.6¢	7700166	7

View Market Depth

No.	Vol.	Price($)
5	5707073	0.006
13	9755274	0.005
20	19416614	0.004
43	46797684	0.003
14	25953500	0.002

Price($)	Vol.	No.
0.006	5750166	7
0.007	9319438	13
0.008	6458186	8
0.009	3650305	7
0.010	2081305	5

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TEG - Its all about the oil price, page-12

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TEG - Its all about the oil price, page-12

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