Edge Res Share Discussion Threads

[mark10101] 23/10/2015 14:45

Obviously that is what has been weighing on the price, let's hope Brad comes back from his vacation and starts delving some news that will lead to a recovery.

[belgrano2] 23/10/2015 14:23

not me, mine are still firmly held. guess someone has thrown in the towel.

[monkey puzzle] 23/10/2015 14:16

can't say I blame them with the caretaker in charge here

[sleveen] 23/10/2015 14:12

One heck of a sell (not mine).

[lazarus2010] 19/10/2015 18:03

Carp, I keep my noose in the bottom drawer :-(

[carpadium] 19/10/2015 16:27

Thanks Laz. That last paragraph from the 'new major capital partner' RNS I could quote verbatim, must have read and re-read so many times since release.
Shame he ducked the opportunity to add a little meat to the bone. I'll repeat the question next week and let you know if there's a valid reply.

Everything I own, bar one, is already in the bottom drawer and, after LGO's news today I'm thinking of fitting an even lower one! Tough times!

[lazarus2010] 19/10/2015 15:51

no clues, only reiterated that they expect these two quarters to be the worst for E&P's in Canada and hence (my conclusion) that there will be multiple assets coming on the market as they try and renegotiate banking covenants. Logically this either means fire sale of assets which are good enough to attract buyers, or total liquidation of companies and the banks selling the assets for whatever they can get. He did confirm that they are still working with their major investor to identify such assets, and they are looking at heavy oil but if some light oil assets are available at the right price they will consider them also.

My main focus was trying to ascertain how Brad intends to fulfill this statement

'We aim to become one of the largest E&P companies focused on medium and heavy oil, for the sole benefit of our existing and new shareholders, and today's news is a significant step in that direction.'

and what size of company does he consider to be 'one of the largest E&P companies focused on medium and heavy oil...'

He didn't respond to those parts of my email! However realistically he must be talking minimum $100mln, and if all acquisitions are successful in creating value for existing shareholders, then it could be a very nice ride. If it takes a few years so what. So long as we have full backing and can continue as a going concern, we should benefit from a combination of rising oil prices (eventually!!) and the acquisition strategy.

These are basically in the next to bottom drawer waiting for everything to turnaround.

[carpadium] 19/10/2015 12:40

Laz, agree, think the pain and lack of relief for oilers, all sizes, will continue well into next year unless Saudi/Syria situation escalates into crisis.

Did you read from Brad's comments any clue they were under-way with a deal, ie reasonably imminent?

[lazarus2010] 19/10/2015 10:07

Carp, he mentioned that Oct and Nov are going to be key months for many companies, which I take as being the double whammy of low oil prices and renewal of banking covenants as has been reported in the press many times recently. Could also lead to a sharp drop in production in Canada and the US as no free cash available for new drilling.

[carpadium] 16/10/2015 17:10

Thanks for that Lazarus, would love to know who or what is being discussed.

Directors' shareholdings remain something of a secret, could be wrong but I believe under Canadian Securities rules they have the option, under 10%, to keep it to themselves.

[lazarus2010] 16/10/2015 13:17

I received an email from Brad after about the fifth time of writing, apparently my emails had been going in to his spam box and were deleted.

Quite positive regarding the new strategy of acquisitions with the new backers. Also mentioned that as a large shareholder himself, he is also feeling the pain and is implementing cost cutting and acquisitions to hopefully benefit all existing as well as new shareholders. Clearly they have hunkered down to minimise all costs and keep the company rolling along while they look for accretive assets, all as per the rns.

GL all long suffering Edgers

[carpadium] 16/10/2015 12:46

An interesting mix of fact and opinion, well worth a read.

[johnsmithmmxiii] 09/10/2015 08:53

A brief reminder of what happened just 10 weeks ago when Brad announced the equity raise.

'We aim to become one of the largest E&P companies focused on medium and heavy oil, for the sole benefit of our existing and new shareholders, and today's news is a significant step in that direction.'


At the time oil had just come off the highs in June of $62 and were heading back below $50, but the deal still went through and at a 10% premium to the vwap, at C $0.08ps, double where we are now.

Assuming nothing has changed with regards the proposed strategy of acquiring cheap assets at fire sale prices, we will hopefully hear some good news this year.

Also quite a bit of positive news re oil prices, hopefully we will have a sustained rise!

[mark10101] 08/10/2015 21:58

Brad needing to raise the profile just in Canada....

[lazarus2010] 07/10/2015 21:34

doesn't appear to have been any buying in Canada, showing C$0.04...Brad needs to get the word out over there to get some buyers on board!

[sleveen] 07/10/2015 13:26

sif

EDG is CHOPS not shale with 60-100bopd likely first 3-4 yrs vers1500bpd with hugh declines.

Wells cost probably 450k (guesstimate) now, previously 650k versus 5m shale?

Production cost reduced substantially due to water disposal/gas eqipment removal.

GL.

[sif12] 07/10/2015 12:28

im not sure if I mentioned but I emailed Brad some months ago, with various suggestions. he took the time to provide a detailed response.

you can never know for sure, but he seemed sincere in terms of his commitment financially and otherwise to EDG.

he did say drilling at this point didn't make sense and that acquisitions of distressed assets was what may be possible.

however, if at a very simple level you think about who is being targeted by the lower oil price strategy of opec, if its initially shale oil US producers, isn't it secondly producers like EDG?

im still holding and at quite a loss so not deramping.

I think our best chance here and I mean survival, is reducing any costs, not drilling, going into hibernation and then waiting- as it seems we have done.

price rises now may cause further fluctuations- as the reduced oil price may have meant less planned spending, but it hasn't killed enough of the shale oil players yet.

incidentally, I did a little exercise.. since 2007, when the markets changed, and share dealing and prospecting/ shorting seemed to become more accessible to the average person, I would have done much better buy shorting every single stock i decided to buy. and that's not just down to the recent downturn.. I mean everything since 2007.

I started in 2004, when people actually held stocks for months, years. now.. its days, weeks. I was 100% up on EDG last year, and not about 70% down...

im not sure where the longer term value plays are? certainly not safely in oil and gas

[lazarus2010] 07/10/2015 10:44

let's get to $50 and stay there for a while before dreaming of $55-60!

[sleveen] 07/10/2015 09:32

I think fiscal Q2 is going to be the toughest due to low POO.

If we get a sustained rise to say US55-60, that should generate cash going forward.

[jamesiebabie] 02/10/2015 17:13

I think the owner of the loan [$10M] will support EDG because the bank has first grabs on the assets. I think our costs are really quite low and that any loan maybe deferred; they have already done a few years ago.

I'm ok with the situation at the moment, but we will fins out more soon. I suspect the balance sheet maybe ok as we had an ok previous quarter and EDG did do some hedging.

[lazarus2010] 02/10/2015 17:05

don't forget Brad did the water disposal well...which saves costs and is almst as good as an additional well...in fact maybe even better as it had a 100% gtee success rate, low risk high reward. I wonder if we are disposinng of other producers' water yet and earning some cash from it?

Re new drilling, I expected him to drill a few wells in spring 2014 after the thaw, but that never happened, and possibly we're lucky that he didn't drill any as we would have taken on more debt and then the PoO crashed and we would have had peak production at low prices.

If the plan to acquire cheap assets works out, then that will be the catalyst to growing Edg. If he can buy producing assets plus undrilled acreage at firesale prices, then as soon as oil gets back into the $60's we will benefit from very profitable production, higher values for acreage and the Loonie will climb against the £.

Twitchy bum time after seeing what happened to Caza, but if Brad can get investors to back us at the bottom of the oil price cycle, then things should be quite rosy going forward.

Remember that our NPV for 1P was equivalent to 23pps once upon a time. If we could double our assets and then see PoO rise then there is no reason why we can't get back towards those sort of valuations.

fingers crossed as nothing is certain in these 'interesting' times

[monkey puzzle] 02/10/2015 16:42

Carpadium

I thought we were saying the same thing!

Brad has been more a caretaker here for a very long time and not busy drilling for as long as I can recall

[monkey puzzle] 02/10/2015 16:40

Sleveen

No not now obviously

[carpadium] 02/10/2015 16:34

Monkey Puzzle, try giving it a little thought, there's every good reason why a company boss should be pro-active at all times whether we're flying high or by the seat of our pants. Probably more so in the latter case as indeed we are.

[sleveen] 02/10/2015 15:39

MP

Would you really want Brad to drill now with the POO it is atm?