This is not necessarily my view, however can I play devils advocate here.
ATS are spruiking the same story that they did when their price was 46 cents (Company had market cap $450 mill) now 2.5 cents and $25 mill.
If the company has such a great asset and future why don't the very high net worth management scoop up a whole host of the company for peanuts
Self appointed Tier One resource. They keep on saying that. Others in the region and industry don't seem to recognise it as such.
Why couldn't ATS drill with the same outcomes as Encana's last 15 wells. ATS only got 2 maybe 3 of their 6 wells right, despite having 6 more years knowledge about the resource and better technology at their access.
What was the cost of Encana last 15 wells. I suggest somewhere around $15-20 million per well not the $10 mill ATS are hoping to achieve at $60/barrel. Far from viable commercial economic return.
Management have not taken a real reduction in income since the economic downturn. Unlike most others they continue to take their full $ return albeit in a mix of shares and cash not straight cash. Some would argue that their work load has diminished with no active drilling and a large part of the companies activities on hold. Why would they buy the company, they are slowly acquiring it in percentage terms anyway (at your expense). Dilution!!!
Portugal was purposely a good buy/punt. After spending good money on progressing it, they dumped it for zero dollars. They paid good money for something that was worth nothing? Good management?
Biden is not a supporter of Shale/Fracking
Oil production diminishing along with hedging position
Very tough market to introduce partner/capital
The resource is there however its cost of extraction is far from economically viable and the future oil price does not look good
Covid has revalued oil and enhanced world governments push for renewables on the world stage
That is why this stock is trading at 2.5 cents
Sorry guys for upsetting the love fest, just food for thought. In saying all that, ATS must be worth something as a punt!
ATS Price at posting:
2.5¢ Sentiment: None Disclosure: Not Held
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