BAM also wants to take private the debt free ISN. They will obviously merge them and they will sell the new entity with the 5,500 boepd production afterwards. The plan is clear now.
BAM did not want to merge SCS/ISN as publicly listed because BAM did not want the retail shareholders to benefit from this.....PLAIN AND SIMPLE.
BAM wants to do it while they are held private and then it will UNLOAD with a new listing the new entity to the MASS AGAIN with a big profit......
STAY FAR FROM WHATEVER BAM HOLDS IN ITS PORTFOLIO.....
IT WILL NEVER WORK FOR YOU RETAIL SHAREHOLDER......
I believe the CEO that incompetent COLIN WITWER must be fired. He must NEVER EVER work in NORTH AMERICA , EUROPE or any other DEVELOPED ECONOMY.......he should be exiled to break stones in SIBERIA for his contribution in ruining the company and screwing the shareholders.
Now you understand why there was this RADIO SILENCE since last summer....there was a PLAN and BAM was the maestro.
Additionally, I will stay far from whatever BAM holds. They screwed the shareholders BUT i believe they will not the shares they want. they bought only 6 million shares out of 45 million free float.
We ALL must contact ASAP the law firms and let them know about this .....check out what happened with CXPO (Crimson exploration) and how the law firms came to help the retail shareholders.
Fully agree. My bad. My mistake. They obviously have no clue about Canada.....It is funny how they express an opinion when they are so many miles away......
Thank you gilesdowden. Is there any chance for a new listing?
I do not expect to be the first of the line ....I just want to get something back.....
The production from its current 20,000 net Beaverhill acres is ~1700 boepd (75% oil) and thus it can be sold around $150M.
However, SCS will still keep Beaverhill acreage thanks to its 10,000 net acres (100% WI) which are undeveloped today....and of course 100,000 net acres (100% WI) in the shallow and low cost Pekisko.
I have not read anything from the things you mention.....SCS or other companies have not released anything like that about the pekisko price for instance.....pekisko produces medium oil but there is no price collapse...
Do not also ignore that SCS has hedged 70% of its light oil production for 2013. However, medium oil production is unhedged, correct.
SCS has also 100% drilling success thus far, and the latest well in Pekisko did NOT fail, it was not a dry well, but it produced IP-30= 90 boepd (60% oil) as the corporate announcement notes. The incomplete stimulation is not a failure! I quote
"In addition to the ongoing water flood pilot, the Company drilled and completed its first dual leg horizontal well in the Judy Creek Pekisko reservoir at the 04-19-063-09W5 (04-19) location late in the fourth quarter of 2012. Although a down hole tool failure resulted in the Company being able to stimulate only one of the two horizontal legs the 04-19 well tested at rates of approximately 50 bbl/d of medium grade oil and 240 mcf/d of natural gas for an aggregate test rate of 90 boe/d over the first 30 producing days. Taking into account the incomplete stimulation the tested production rate represents a significant improvement to past rates achieved on the play. The Company believes that that this new drilling and completion technique represents a significant economic improvement to completion and drilling methodologies previously used".
BAM owns 47% of SCS.
The insiders of SCS own almost 1,000,000 shares.
The CEO only owns about 600,000 shares.
SCS sits on a GOLD MINE too. Fact according to the drilling results (IP-30, 60, 90) thus far.
SCS has 125,000 net acres undeveloped land (Pekisko, Beaverhill).
Pekisko: 100,000 net acres (100% WI).
Beaverhill: 30,000 net acres. (10,000 net acres at 100% WI and 50,000 acres at 40% WI).
BHL shows great results but the shallow and low cost Pekisko shows very good results too.
Waterflood also responds well in Pekisko and it will most likely respond well in BHL.
Crescent started it in early 2012.
A JV (50%) for Pekisko and the remaining BHL can give SCS around $100M.
Before you sell SCS, think of this option too.......
ISN (Insignia) belongs to BAM. ISN is almost debt free.
Merging SCS with ISN gives a new company with 5,500 boepd (oil-weighted) and a new credit facility that has significant free room.
ISN is also cash flow positive. ISN has plenty of money to borrow through its credit facility.
This way, the new company has the money (~ $10 M cash flow per quarter) and the INFRASTRUCTURE in place to focus on the OILY land in BHL and Pekisko and boost its production.
BAM has bought SCS at ~$2 and it will not let its investment evaporate .......
SCS has retail investors ONLY currently. BAM and retail investors that jump off the bridge ignoring any fundamentals. This impacts the negative market sentiment currently.
Somebody is buying and is laughing at the sellers. I posted the FACTS that the retail investor denies to see. He is in DENIAL and this is why, he is always a LOSER.
SCS can make a JV or sell for a decent $20/boe of its 2P HEAVILY OILY reserves (12 MMboe 2P Reserves) and get $240M.
Comstock (CRK) sold 25 MMboe of reserves for $768 M few weeks ago at West Texas.
Magnum (MHR) sold just 24,000 net acres with 3,000 boepd production for $400M today.
Check out the deals of CPG in 2012. CPG has JV with SCS for PART of the Beaverhill Lake formation only, NOT Pekisko.
Pay attention at the deal with RELIABLE ENERGY which shows the WORST CASE scenario for SCS:
January 2012: CPG bought Wild Stream (TSX Venture: WSX) for $611 million, adding production of approximately 5,400 boepd.
February 2012: CPG bought assets in the Viewfield Bakken light oil resource play in southeast Saskatchewan from PetroBakken (PBKEF.PK) for $427 million in cash, adding 2,900 boepd (85% oil and liquids) in production.
February 2012: Crescent Point also acquired Manitoba light oil assets (70% oil and liquids) with production of just 940 boepd for $130 million.
March 2012: CPG acquired the majority stake in Reliable Energy that it didn't already own for about $99 million. The deal added production of approximately 1,000 boepd (65% oil and liquids) from the Bakken light oil play.
Reliable Energy was HEAVILY IN DEBT. This shows that SCS can get AT LEAST $200M as it has DOUBLE production and MORE OILY production than Reliable Energy.
Excluding the net debt, it gives a market cap of $90 M MINIMUM, which is $1.1/share !