Bonterra Energy Corp. (BNEFF)

Bonterra's 315 million dollar debt is unsustainable as a stand alone company. The market price action won't determine that but the banking facility will. Fink doesn't even address this problem. He has no plan for reducing Bonterra's debt. He only talks about increasing production which will only lead to more debt. This doesn't show up while oil prices are high or rising but when the price of oil goes down the banks will pull the plug. If you listen to and follow Fink he will take your investment to zero. Counting on oil prices rising is not a business plan it is gambling and that is what Fink and his management is trying to do with their shareholders investments: gamble. Obsidian has a plan that is focused on reducing debt. That is a prudent business plan that unlike hoping the price of oil stays high can be controlled by management. Fink seems to think hope is a plan. No wonder only 52 percent of Bonterra's investors voted for him in the most recent board election.

Now your BNE can Crash because Your Fink will quite buying. A good day for OBE!

Stephen Loukas:
"While the Offer would have delivered synergies to shareholders of both companies, the changing environment, impact of higher commodity prices and expected strength of our 2021 strategy no longer makes the proposed exchange ratio attractive for Obsidian Energy and our shareholders. As a result of the expiration of the Offer prior to the satisfaction of its conditions, no Bonterra Shares will be acquired and all Bonterra Shares that were tendered to the Offer will be promptly returned to the depositing Bonterra shareholders."

BNE Shareholders I want to address the question of why this OBE stock is so undervalued and unloved for those seeing the amazing fundamentals in such a low priced stock.

In late 2017 the stock was trading well above $2 but they entered into very bad hedging position locking everything into $50 WTI. In late 2018 the differentials widened dramatically on Canadian crude such that OBE was nearly break even on a cash basis and the stock plummeted below $1. Fear of delisting emboldened short players and OBE announced a 7 for 1 reverse split to protect the listing.

This backfired very badly as now the shorters were emboldened even more as this is a very bad sentiment indicator and the pushed it down to around 20 cents which after the reverse split equated to $1.40. By this time the company was stabilizing but they announced a strategic review which again signalled a very big negative and again the shorters went after the price sending it under a $1 once again. The company was looking to recover the $1 mark but then COVID hit and combined with the delisting it hit 20 cents in early April 2020.

Nothing fundamentally has changed operationally since 2018 when the stock was 4 times higher. The company produces 25,000 bbls per day and most of the production is high margin Cardium production. What is different is all to the good: (They have reduced debt) (they have renegotiated their office lease saving $12 million/ year) (they have reduced well costs) (they have placated their lenders) )they have made Willesden Green their cornerstone with some of the best wells in the Cardium) So when I suggest a $10-12 share price which is $1.45 to $1.70 pre split, this is not a stretch target, this is the equivalent of CPG returning to $6.50 or ATH returning to 85 cents, WCP returning to $5 or CVE returning to $12 which is where all these players are in mid 2018.

With recovering oil prices and continued debt repayments, there should be no reason for this stock to be $10+ in the next year.