According to TD Securities November 8th report the average Canadian E&P is trading at 144% of NAV and 11.5 EV/CF, Equal is trading at under 50% of NAV and under 4 times EV/CF. As for management reducing debt, it was due to our pressure that they undertook a strategic review and reduced debt in the first place and NOT at their own initiative (you can read many of my articles on the topic from earlier in the year). As for developing the field, it makes absolutely no sense to sink $36m dollars into drilling uneconomic wells at current prices, a much better use of capital is to return it to the owners of this company. They have sold $130m worth of assets and are sitting on $22m in cash and $125m in free credit lines, couldn’t they return some of that cash to shareholders in the form of an accretive buyback?

We are putting forward a very sensible plan to return value to shareholders, this board and management has shown no ability to add value whatsoever over the last 5 years, it is time to funnel the cash back to the company rightful owners.  As Rockefeller said, the purpose of this whole enterprise is to generate wealth for the shareholders, the board and the management are acting in this way because they have very little at stake in this company, their goal is to sustain themselves and not return or create value for the owners of the company.