Okay folks here we go....
About CLL,
22 Nov 2011, confidential communication between ERCB and CLL, likely approval of Great Divide Expansion Project.
https://www3.eub.gov.ab.ca/eub/dds/i...Number=1650859
22 Nov 2011, Richard Gusella CEO buy 25000 common shares. (Check SEDI website for details, I cannot link page)
8 Dec 2011, Trading is halted by IIROC,
8 Dec 2011, Connacher issues a statement at the request of IIROC to resume trading.
Quote:
CALGARY, Dec. 8, 2011 /CNW/ - Connacher Oil and Gas Limited (CLL - TSX) today stated that it has been required by Investment Industry Regulatory Organization of Canada (IIROC) to provide a comment on the recent trading activity in Connacher's common shares.
Connacher has recently advised capital markets of its improved liquidity and ongoing business plan, including in relation to its oil sands joint venture initiatives and its conventional activities. Furthermore, the Company notes that recently selling prices for bitumen have increased by over 50 percent above average levels received in the most recent reporting period.
Connacher also advises it has received a confidential, non-binding, unsolicited proposal to acquire all of the outstanding shares of the company. The proposal is conditional upon, among other things, due diligence, negotiation of all definitive documentation and approval of the Board of Directors of Connacher and of the interested party.
Consistent with its fiduciary duties and in consultation with its exclusive financial advisor, Goldman Sachs, and its legal counsel, Macleod Dixon LLP, the Board of Directors of Connacher is considering and evaluating the proposal. There can be no assurance that a formal offer or a transaction will result from this proposal
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8 Dec 2011, Trading resumes and CLL jumps to 1$/share.
13 Dec 2011, Connacher issues a statement regarding the offer;
Quote:
CALGARY, Dec. 13, 2011 /CNW/ - Connacher Oil and Gas Limited (CLL - TSX and Alpha) announced today that its Board of Directors has determined not to pursue the unsolicited, non-binding and conditional proposal received from a third party to acquire all of the outstanding shares of the company. The Board determined, upon extensive and thorough deliberation and following receipt of advice from its financial and legal advisors, that the proposal was not compelling.
Connacher continues to pursue its joint venture initiatives and to execute its previously enunciated business plan.
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13 Dec 2011, Stocks drops 15% at open on the news.
So what's it all mean? Well we all have our own opinions, I think the selloff today was a lot of people trying to make money on the sell down and buy back in. Rumor mill says offer was 1.40/share, which is WAY too low, it doesn't even cover the 1.50 options.
I would suspect that if the un-named party who made the offer is seriously interested, they will come back with another offer much better than the first, prior to CLL forming a joint venture with another interested party, as I believe, and CLL has said, that the JV is in their best interest.
EDIT: Would like to mention I think IIROC should be harder on CLL about the way this whole offer to purchase went, what a joke. They should have been forced to detail the value of the offer and basic variables.
CLL trading at .80 again btw, 14 million shares lol Lots of volume. The few people that bought at .64 did good today lol wasn't that low for very long.
Now on to my purchase this morning,... bit of a gamble.
V.AOS, Alberta Oil Sands Inc.
Purschased 62000 shares at .16, whats the story with AOS? Here it is..
Originally known as Platform Resources, the company would shuffle in 2007 and the end result would be obtaining private financing, purchasing oil sands lease land and the share price going to 2.20 a share back in the oil boom years.
Fast forward to 2008/2009 and the global financial meltdown drove the share price into the ground.
January 2010 they submit application to ERCB for initial Clearwater Project and share value starts to climb, sits near .50/share.
Current situation, the price has been dropping since January 2011, likely on worries that the pilot wont be approved, in combination with the poor global economic activity.
The catch,
Clearwater Project - Alberta Oilsands Inc. Clearwater Project Map
http://flyfortmac.ca/Portals/0/pdfs/...ENT%20PLAN.pdf
Ft. MacMurray Airport Expansion, approved and awarded to the company I work for.
So what does this mean, I doubt the current proposed project will be approved with its original location, and believe many other investors are worried about it as well.
The upside, they will likely continue with the project and make some geographic changes to the plant and well pair locations. It is likely that the proposal with the ERCB has already been revised to reflect these requried changes, and approval will be within the next 6 months. Additionally the company will likley recieve some compensation from the Provincial Govt. though I doubt it will be anything significant.
The other upside, a total of 4 properties,
Clearwater, 32 sections, 279 million barrels (contingent)
Grand Rapids, 18 sections, 216 million barrels (contingent)
Algar Lake, 51 sections, 810 million barrels (contingent)
Mackay River, 5 sections, reserves to be determined.
Additionally, 3rd quarter financials for 2011 summary:
Cash and Cash Equivalents: 31,362,513
Deficit: (21,807,968)
Total Equity: 52,144,579
Basically that works out to about .44 per share net value, .26 per share cash on hand... so why is it trading at .16?
It's a gamble, but this company has done a good job growing stricly with exploration and land sales/purchases.
There is an obvious situation taking place in the oil sands right now where people are interested in securing lease land, which is more or less the same reason I bought CLL...
Anyway had to type this in a rush... busy at work lol.
At the end of the day, if AOS were to sell, I figured it out to be around 1.25-1.75 per share... a huge profit... otherwise if they choose to proceed with their current business plan it will be a long hold to make any money...
Think of it this way.. how much cheaper can it get lol.
GLTA.
Edit: One more issue is the low volume on AOS... not to keen on that... but again even if it get to net value you will make roughly 250%