I expect CPG to be the acquirer. LTS needs to sell its Duvernay to reduce its large debt.
ARN's debt is 1/2 bank debt and 1/2 convertibles. The convertibles become less valuable as the share price goes up. That's why ARN has so much potential upside if they clear their bank debt. Their asset sale will do most of it.
A merger with us can do the rest and leave a company with about 2.5-3k boed of stable light oil production and a massive potential resource base. The way this usually works is that sentiment changes in a hurry and money floods in. We already saw it in ARN just on the rumor of the asset sale, where the stock almost doubled. It will go back to $2 in a hurry if they can clear most of the debt.
I hope we can get a merger done but we need some info about our asset sales and the lawsuit first.
Wiggling
MPO Price at posting:
20.5¢ Sentiment: Hold Disclosure: Held
