Share Buyback

Welcome to the Connacher Oil and Gas Hub on AGORACOM

Connacher is a growing exploration, development and production company with a focus on producing bitumen and expanding its in-situ oil sands projects located near Fort McMurray, Alberta

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spiderman8

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Share Buyback

posted on Sep 15, 2011 10:12AM

Although they don't have the cash but think abiut this.....

400 M shares at lets say .75 each. equals 300M. 300M gets you design capacity of 20,000 bbl/d, plus other assets and debt.

If you spend that same $300M you can't build even a 10,000 bbl/d design capacity plant. So it is way cheaper to buy existing shares through a buyback, and of course the same holds for someone trying to buy it out.

Just my thoughts......

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