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I posted this on the NVS BB but as can be seen, RRX is mentioned as a possible buyer of NVS. GLTA
NOVUS ENERGY (V-NVS) $1.08 +0.01
With the price of oil going down over the last while and costs in
the business increasing rather dramatically, $85.00 oil is certainly
not creating the joy in the oil patch of six and 12 months ago. And
of course with all the talk of the fiscal cliff, it’s scary looking at the
charts of all the oil and gas companies out there. There are very
few of them trading at or near their high for the year and many are
trading at significant discounts to where they might have been.
Novus Energy is one of the very few trading at lofty levels and on
big volume and as we wrote yesterday, we know that discussions
are ongoing about what next for the company.
Yesterday, Andrew McCreath on BNN talked about it as well.
Andrew over the last while has picked up an audience for some of
his insightful suggestions. We believe “Bridgediver” on Stockhouse
got it right in transcribing what McCreath said about Novus
when he suggested, “but what is really interesting about this acquisition
(of private production and land, by Raging River) is that
they are buying all the land around a company called Novus, NVS,
which is a company that I believe a group, 3 different companies
are interested in buying and I would expect a transaction to occur
early in Q1 of next year for that company (Novus). Anyway, it
looks like a good tuck-in acquisition for this company (Raging
Our own thoughts in this ugly market is that Novus could end
up with three situations...they could be bought out (which isn’t
happening a lot these days); they could be merged with somebody
such as a Raging River (which lately hasn’t worked out for companies
like Pinecrest Energy and a long list of others); or nothing
could happen (which we suspect could drop the price back to
where it was a few weeks ago). So which one of the three scenarios
We need to hear something positive, so Martin King of First
Energy Capital writes, “Last week, Aeco natural gas prices hit their
highest level in the past two years. This underscores what has
been a solid rally for North American natural gas prices in the past
month or more. We expect price strength to continue into 2013,
and prices to date have substantially outperformed our expectations
Why you need to read this: 1. Aeco prices have reached two
year highs in the past week and have been trading very close to
benchmark U.S. Henry Hub prices. 2. Aeco price strength is stemming
from the overall rally in North American natural gas prices,
with the tight price differential likely reflecting tightening supply
conditions in Western Canada. 3. We expect the price strength to
be sustained for 4Q12 and well into 2013, merely adding to our
already price bullish stance for North American natural gas prices.
4. Remain long and get longer the natural gas equity space