A Refresher!
in response to
by
Welcome To The Canadian Imperial Venture HUB On AGORACOM
Identify, Focus, Develop.
Message: HALTED eom
Just to refresh what was said a couple of months ago:
| 04/07/2008 | Canadian Imperial Venture expects to be a target in about two months, CFO says mergermarket |
| Story | Canadian Imperial Venture (CVQ), the listed St John?s, Newfoundland-based energy entity, expects to be a takeover target when it finds out the estimated potential reserves for its West Newfoundland light oil play, said CFO Gerard Edwards. "We'll find out about that in the next 60 days. If we have success at Shoal Point [Newfoundland] where we could have 50 to 250 million barrels of oil, it'd be very attractive," Edwards said. The company is on the "radar screen" of several larger oil and gas companies which are taking the "wait and see approach", he said. When asked if CVQ, with a market cap of CAD 32.1m (USD 31.9m), has been approached with regards to a sale, Edwards said, "There are always ongoing discussions." This news service previously reported that Talisman Energy could be a potential bidder for CVQ. "There are lots of players out there that could be interested in us and they [Talisman] could be one of them," he contended. Edwards declined comment on what a good offer would be for the company. "If someone could show us that they are better equipped at developing this play, then that would help us with the decision to merge or a sale of the company,? Edwards said. Management, insiders and investors who are supportive of management and their efforts own about 35% to 40% of the company, Edwards said. Meanwhile, the equally weighted oil and gas company has looked at some natural gas producing assets in Western Canada for acquisition purposes. "We've been acquiring companies at the rate of one per year for the last three years," he said. The company sold some of its non-core holdings for CAD 5m (USD 4.9m) this January, CAD 2m (CAD 1.9m) of which has been used for its drilling program. The remaining sum, along with some cash, could be used for acquiring assets. CVQ has also signed an LOI to acquire its partner in its West Newfoundland play, the privately held Calgary, Alberta-based Shoal Point Energy, for an undisclosed sum. It also acquired USG Energy for USD 20m in 2007. by Divya Balji |
| Source | mergermarket |
| Value | USD 32m (Canadian Imperial Venture's market cap) |
| Stake Value | more than 30% inclusive |
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