Crescent Point to buy Ryland Oil for C$95.4 mln
June 23 (Reuters) - Crescent Point Energy Corp (CPG.TO: Quote) agreed to acquire oil producer Ryland Oil Corp (RYD.V: Quote) for about C$95.4 million ($92.8 million), boost development of its Flat Lake Bakken play in southeast Saskatchewan. Ryland shareholders will get 0.0117 of Crescent Point common share, or about 46 Canadian cents, for each share held, representing a premium of 24 percent based on Ryland's Tuesday close of C$0.37...
The price is fair(CAD 400 per acre) considering that the Flat Lake Bakken play is geologically quite challenging and that Ryland has been run by crooks and morons.
CPG's release
6 comments:
Not suprising at all, good deal for cpg (cheapish).
Have you checked latest presentation of Reliable energy? Im thinking of it.
I have. Assuming that they can hit the 900 boe exit target, the stock is relatively cheap(Saskatchewan/Manitoban light oil assets usually sell for over $100 000 per flowing barrel and >$25 for 2P reserve barrel).
Finally. Price is not high, but counting in currency moves, not a bad investment at all. Thanks for the tip.
The land is worth more, but the problem is/was the debt. Less than 200 barrels of production doesn't generate no where near enough cashflow to service that debt.
With this acquisition CPG's land position in the United States has increased once again. I don't think they have(we) have drilled a single well on US soil to date, but CPG will probably start to develop Ryland's land in North Dakota.
Wasn't much of tip I'm afraid. Using the 46 cent valuation my gain is about 20% in six months. However I'm happy get more CPG stock.
Still, a good result these days. Haven't owned CPG for some time now.
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