Member Info for tonynorstrom1

Serif,

“So why do you think funds are still buying at the current price….”

Simples - So I don’t know what funds in particular you are referring to but in general the SP is about 12.5p and the offer at the current GTE share price is worth about 13.1p with the ability to trade for at least another couple of weeks.

I believe also there is still time for a competing bid although I’m not sure it’s likely.

Sharesahoy,

Not pumping or defending GTE and also not criticizing your comment - but on what basis are you saying that GTE are not doing that well and why would they need to do an equity raise. The share price has obviously not done well recently but they earn tons of cash and the shares look cheap. Interested to hear whats behind your comments.

"Why wouldn’t an ii or Gte itself be intending to elect all shares"

Quite simple - the ratio of shares to cash was fixed at the time the scheme of arrangement was announced and at the time GTE shares were about $8.66 I think.

So if you were able to take all cash now and lets say that's worth $1,000,000. If you were to take all shares at todays SP your holding would be worth around $720,000. Why on earth would you take the shares - take the money and then buy the shares if you like GTE. That's why I think people will be disappointed if trying to opt for the all cash option - they will get very little if any additional cash and will still end up with a significant number of shares.

It says that in the scheme of arrangement but only to the extent that fellow shareholders are prepared to take on the opposite trade i.e. for each shareholder electing to take an additional $1000 in cash, there must be another shareholder willing to take $1000 worth of GTE shares.

I'm not sure its going to work out very well since GTE shares are down about 25% since the offer was made i.e. everyone should elect to take the cash as its worth 25% more than the corresponding shares.

“Tony - interesting that you query why someone questions the integrity of GTE, then later on comment …… GTE had the most competitive bid SO WE ARE TOLD “

Not really interesting at all Austin - seems in your rush to have a snipe - you’ve not really grasped the point. My initial query was on what is the basis of questioning GTE’s integrity. The comment on “we are told” relates to what I3E have stated and not GTE and the “we are told” happens to be factually correct.

The "Confidentiality Agreement" is a standard document and and is very much standard procedure in this type of negotiation/transaction. The way its written appears to be equitable to both parties and there is nothing in the document that prevents i3e from negotiating with other parties which is in fact what they did. In the recent podcast i3e referred to running a competitive bid process and it just happens that GTE provided the most competitive bid so we are told. The reference to unsolicited bids applies to all the bids including GTE and is nothing more than i3e indicating that the process was not initiated by them.

"GTE to my mind is not a company with integrity ...."

Interesting comment - what is the basis?

Not the most slick presentation - i've seen not seen tennis fans move their heads and eyes so much watching a match !

I agree Jun Man - too many imo are attaching too much importance to the present AECO pricing. When you look at pricing an asset or indeed making a decision whether to proceed with a project - you take a longer term view on Commodity pricing. I3e have 23 years of reserves - its crazy to be looking at todays gas pricing and thinking the deal looks ok.

In addition the Revenue picture is not as grim as it might seem by just looking at the gas price - currently gas is only about 10% of revenues - even at more normal pricing of around say CAD 3.00/mcf - its still only 25-30% of revenue.

i3e is still making money and is debt free. Of course i3e may have to take another look at the dividend and Capex spend but that's par for the course.

I suspect what will happen is the deal goes through - commodity prices and particularly gas prices will strengthen towards the end of the year and into next year and we wake up one morning and realize we sold out at the bottom of the market and were shafted.

I would just add that the deal is less attractive (imo) than it was when announced - due to the fall in the Gran Tierra SP - it’s worth about 9% less than it was.

I’m still in Stas - if you think the deal will go through which is more likely than not imo - it’s a guaranteed 8% above the current SP and of course there’s still a chance of a rival bid which imo is less likely than not - but if there is then potential more upside.

If the deal doesn’t go through - I’m not sure the downside will be as bad as some here are speculating. I’ve not run any figures recently but in June when AECO was around the 70-80c mark - gas revenue only represented around 12% of total revenue - so the fact that it’s down at around the 10c mark in the last day or so has a much smaller impact on revenue than many think. Obviously not great but I3E still make money at the current Oil, NGL & Gas Prices. More important than AECO imo is the general sentiment around Oil and Gas which imo is overly negative.

VernetLes,

Your sounding a bit like Will Holland now ! I hope your right - I'm a shareholder to.

I'm aware that there are large companies working in EQ but have you seen any recent examples of fam-ins / outs. Not a trick question - its not something I have researched. Aside from the Companies you mentioned - there was one noticeable omission from your list - Exxon which is exiting EQ which is not helpful.

Another company i've been taking a look at is DEC for its dividend. Its also been cut 50% in the recent past but is still on a tasty +/- 9%

The decomm liabilities did not pass the smell test for me and this video crystalizes the issue - well worth a watch for anyone who is invested or thinking about investing:

https://youtu.be/8rZ0KjoYMto

Can you repost NewKOTB ?

Lets have a look at what all the fuss is about.

Is there a withholding tax on DEC dividends?

DEC is a Company I have looked at in the past and again recently trying to find where I can replace my i3e dividends. The attached video is well worth a watch for shareholders / prospective holders.

https://youtu.be/8rZ0KjoYMto

I still think DEC is potentially worth a punt short term for the dividend - but longer I cannot help feel this is like a house of cards.

"It's pretty obvious EQ is incoming"

If the market thought that - the SP would be considerably higher - shirley?

Mr Siggins,

Maybe it’s you that’s asleep. This is all about funding and David Hobbs has not delivered despite some very encouraging words 8-10 months ago.

Putting 2 & 2 together and coming up with 5 - I suspect the potential financial backers that David Hobbs thought were onside were not totally convinced by the previous restricted flow test and extrapolated results hence want to see what Megrez does.

This share has been multiples higher than it is now despite relatively little dilution so not everyone is a believer yet.

There's no ex dividend date - the dividend is wrapped in as part of the offer.

Disappointing indeed that the Company were not prepared to face up to PI's and take a few questions.