Agoracom Blog Home

Archive for the ‘Oil and Gas’ Category

Canadian Small-Cap Consolidation Continues – Pace Oil & Gas, AvenEx Energy, Charger Energy Amalgamate – Form Dividend Paying Small-Cap

Posted by AGORACOM at 11:06 AM on Thursday, December 20th, 2012

Canadian Small Cap Consolidation Continues - Image Courtesy Of FlashDBA.com

Pursuant to my theme that a Canadian small-cap catharsis is underway … and long overdue … take a look at the huge headline below.

Hats off to the management teams of all 3 companies for this great move.

Pace Oil & Gas, AvenEx Energy and Charger Energy to Combine and Form Intermediate Dividend Paying Corporation

Conversion of natural gas volumes to barrels of oil equivalent (boe) are at 6:1.

CALGARY, ALBERTA–(Marketwire – Dec. 20, 2012) –

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS.

Pace Oil & Gas Ltd. (“Pace”) (TSX:PCE), AvenEx Energy Corp. (“AvenEx”) (TSX:AVF) and Charger Energy Corp. (“Charger”) (TSX VENTURE:CHX) announce that they have entered into an agreement (the “Arrangement Agreement”) providing for the combination of Pace, AvenEx and Charger to form a dividend paying corporation to be named “Spyglass Resources Corp.” (“Spyglass”). Spyglass will have a balanced commodity profile and sustainable business model underpinned by 18,000 boe/d of stable, low decline oil and gas production and will be led by an experienced management team.

The merger will be completed through an amalgamation of the three parties (the “Merger”) on the basis of 1.30 Spyglass shares for each outstanding common share of Pace (the “Pace Shares”), 1.00 Spyglass share for each outstanding common share of AvenEx (the “AvenEx Shares”) and 0.18 Spyglass shares for each outstanding Class A share of Charger (the “Charger Shares”). The exchange ratios represent a value of $4.32 for each Pace Share, $3.32 for each AvenEx Share and $0.60 for each Charger Share based on the closing price for AvenEx on December 19, 2012.

In conjunction with the Merger, AvenEx has reached a binding agreement for the sale of its Elbow River Marketing business (the “Elbow River Sale”) for aggregate cash proceeds of $80 million, subject to regulatory approvals, customary closing conditions and adjustments. The Elbow River Sale is expected to close by mid-February 2013.

Spyglass will have approximately 129 million common shares outstanding upon completion of the Merger and, subject to receipt of the final approval of the TSX, will be listed on the TSX under the symbol “SGL”. Spyglass will be managed by the current Charger team, led by Tom Buchanan as CEO (former President and CEO of Provident Energy Trust) and Dan O’Byrne as President (former COO of Provident Energy Trust). The Board of Directors of Spyglass will consist of 8 members with nominees from each party including Randy Findlay as Chair, Dennis Balderston, Tom Buchanan, Gary Dundas, Mike Shaikh, Jeff Smith, Fred Woods and John Wright.

“We are very pleased to introduce a new dividend-paying intermediate oil and gas producer to the Canadian market,” said Tom Buchanan, Chairman and CEO of Charger. “The combined asset base features mature, low decline properties and a balanced commodity profile coupled with the light oil development opportunities needed to sustain the model. The management team has previously operated the majority of the assets that are being contributed to Spyglass and has a proven track record in respect of the execution, financial and operational discipline that is required to sustain a cash-distributing entity.”

Dividend Policy

Upon closing, Spyglass will implement a monthly dividend of $0.03 per share with a dividend payout of 35% to 40% of cash flow (approximately $46 million annual dividend) and a target all-in payout ratio (including $80 to $90 million of sustaining capital expenditures) of approximately 100% of cash flow. The dividend policy will be reviewed monthly and is based on a number of factors including current and future commodity prices, foreign exchange rates, an active commodity price hedging program, status of current operations and future investment opportunities. Each dividend declaration will be confirmed by Spyglass in a monthly news release. Spyglass will consider implementing a dividend reinvestment plan (DRIP) following completion of the Merger.

Key Attributes and Sustainability Criteria of Spyglass

Each of Pace, AvenEx and Charger believe that the Merger will create immediate and long term shareholder value through the introduction of an income and growth company of scale with a low decline, balanced commodity profile and a sustainable dividend. The business model is supported by the following key attributes: (more…)

AGORACOM Welcomes Indonesian Oil & Gas “Elephant” Hunters, Continental Energy Corp.

Posted by AGORACOM-JC at 9:27 AM on Tuesday, April 3rd, 2012

Continental Energy Corporation (OTCBB: CPPXF) an emerging international oil and gas company, today announced that it has retained the services of AGORACOM Investor Relations to provide online investor relations services. AGORACOM will specifically provide an online investor relations community for current shareholder communications, in addition to online marketing through search engines, social media networks and Tier-1 financial content partners for the purpose of attracting new shareholders.

Online investor relations maximizes the speed of communication, the degree of transparency and the access to company information. In response to overwhelming research data being generated by small-cap investors, the Company selected online investor relations to facilitate faster and more efficiently communications with both current and prospective shareholders around the world.

Effective immediately, a customized and monitored Continental Energy Corporation IR HUB will be available at http://agoracom.com/ir/continentalenergy, allowing management to communicate with shareholders anytime and in near real-time through an electronic shareholder forum http://agoracom.com/ir/continentalenergy/forums/discussion. Moreover, the IR HUB will provide the Company’s management with the ability to extend communications beyond text via audio messages, video presentations, Skype broadcasts, webcasts and podcasts.

Richard L. McAdoo, Chief Executive Officer commented, “We are anxious to embark on this campaign to both increase communications with existing shareholders and to attract new shareholders to our company as we continue to expand our involvement into new energy projects throughout Southeast Asia. We encourage everyone to get involved and to maximize the strength of our online IR campaign.”

Bengara II Block

Indonesian Focus

Indonesia holds proven oil reserves of 4.2 billion barrels and ranks twenty first among world oil producers, accounting for approximately 1.2% of world oil production . Declining oil production and increased consumption resulted in Indonesia becoming a net oil importer inlate 2004. This factor, along with high oil prices in 2004-2008, led the Government to substantially scale back the domestic fuel subsidyin 2008 and to decide to temporarily withdraw from the Organization of Petroleum Exporting Countries –an organization representing approximately 45% of world oil production. As the only Asian member of OPEC since 1962, the Government has indicated it will consider rejoining OPEC if the country’s oil production can be increased and it can becomea net exporter again.

Indonesia is ranked eighth in world gas production, with proven reserves of 108 trillion cubic feet in year 2010. This ranks eleventh largest in the world and the largest in the Asia Pacific region.

IR Hub / Corporate Profile / Discussion Forum

Donnybrook Energy (DEI:TSX Venture) … Buy Out At $1.20?

Posted by AGORACOM at 8:54 AM on Monday, February 28th, 2011

I am long Donnybrook at $.67, so I am biased but I found this market call very interesting.  I especially liked the reasons for the weakness here at the end of the month (warrant exercise) and will be looking to add more to my position.  Click on image for the full article:

CNBC Sets Jim Rogers Straight On Commodities – Despite Being Wrong For A Decade

Posted by AGORACOM at 4:11 PM on Friday, February 4th, 2011

Despite commodities outperforming stocks by 1,000% over the past decade, the idiots at CNBC Europe speak to Jim Rogers as if he’s a senile old man.  Reminiscent of the way CNBC and other media anchors would speak to Peter Schiff before the the world banking industry melted to nothing (only to be saved by Xerox machines at every central bank).

AGORACOM Sponsors 2009 Vancouver Cambridge Conference

Posted by AGORACOM - Mitch at 2:55 PM on Tuesday, June 2nd, 2009

picture-3

AGORACOM is very proud to announce that we are once again sponsoring a Cambridge Conference. This time, we are sponsoring the 2009 World Resource Investment Conference on at the Vancouver Convention Centre in Vancouver, BC on June 7th and 8th.

The 2009 event promises to be an incredible conference for both investors and public companies as it features an world class line-up of speakers, covering all types of direct investments in resource public companies, speculative investing, resource exploration, oil & gas, world outlook, investment strategies and more.

AGORACOM is ideally situated in the middle of all the action at booth #131 so if you plan to attend please stop by.

SPEAKER WORKSHOP

In addition, I will also be conducting a Speaker Workshop on Sunday, June 7th at 12:30 PST called, “Learn To Use Blogs, Twitter and RSS Feeds To Make You A Power Investor”. For years, CEOs and IROs have ignored them as irrelevant and having quirky names, but with tens of millions of investors using them, public companies incorporating them and even the SEC green lighting them for investor relations, you now need to understand how social media tools can supercharge your market knowledge.
This workshop will teach you how to use social media to cut through clutter, get the information you need directly to you and connect with the smartest people on the planet.

Hosted by: George Tsiolis, Founder of AGORACOM.com

Panelist: Peter Grandich, Chief Commentator of AGORACOM.com

See you in Vancouver!

Regards,
George

Oil Bugs: “Non-OPEC Oil Production Has Peaked” Says Gregor $$

Posted by AGORACOM at 2:07 PM on Friday, February 27th, 2009

According to Gregor Macdonald, an oil analyst and energy sector investor, who also focuses on the coming transition to alternatives (with a big Twitter following) ….

He ain’t Gospel – but he is EF Hutton (when he speaks, we listen).

Regards,
George