10.3mm shares of Cequence at current market prices is worth +/-$14,000,000. In addition, we have FIR production of 220 boe/day, Bigstone Production of approx 200 boe/day (??) and our land holdings in Bigstone and FIR. Our current mkt cap is sub $10MM. Can't see how this doesn't pop higher on this news as it seems to me there is a valuation disconnect. I am now wishing i had bought my entire DCA on Friday.
Longer term, this gives us leverage to the development of those assets and a rebound in nat gas prices via CQE share price increases. I think there is good value in these shares considering they were sub $4 prior to nat gas tanking. On top, they are a liquid asset that can be converted into cash easily if a better opportunity arises.
24 months ago, this deal would have been appauling to DEI shareholders. Today its viewed as a step forward.