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Message: Re: Who’s The Next Wildstream in the Saskatchewan Oil Patch? - Yukon One
Hi Yukon One;
This is an interesting article that you posted. My only criticism of this article would be in terms of whether or not Crescent Point would have any interest in buying out Petro One as the next take over target. I do not think that Crescent Point would have any interest in purchasing Petro One. My reason for saying this is that the Crescent Point take over of Wildstream's assets specifically excluded the Dodsland/Viking assets. If you read Crescent Point's takeover agreement press release you will see that Crescent Point was not interested in acquiring Wildstream's Dodsland/Viking properties which were excluded from the deal and which are being spun off into a new oil company which will be run by Wildstream's current management team:
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" As part of the Wild Stream Arrangement, Wild Stream will move certain of its assets in the Dodsland area into Newco and assume debt of $43.5 million, for a Newco net asset value of approximately $120.4 million, or $1.61 per share."
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So there is no indication at present that Crescent Point Energy has any interest in acquiring a large landholding in the Dodsland/Viking pool at all. A more likely next takeover target for Crescent Point would be Arcan Resources which is currently 19% owned by Crescent Point and which holds land in the Swan Hills Beaverhill Lake light oil reef play in Alberta. However, as a stand alone junior oil company to invest in, you may be correct that Petro One might be an interesting junior company to invest in, but on the otherhand why not lessen your risk and invest with a proven management team led by Neil Roszell the current head of Wildstream who will be running the "Newco" spin off of Wildstream which will retain all of Wildstream's Dodsland/Viking holdings IMHO.
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Cheers; Scott
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