Devon Shire
Long only, newsletter provider, oil & gas, small-cap

At This Valuation, Petrobakken Won't Last Through 2013 As An Independent Company

On October 29, 2012, Petrobank (OTCPK:PBEGF) announced that it would be distributing its 57% interest in subsidiary Petrobakken (PBKEF.PK) to shareholders.

The benefits of putting the Petrobakken shares directly in the hands of shareholders according to Petrobank include:

- Petrobank shareholders will receive direct ownership in the shares of New PetroBakken plus freely tradable shares in New Petrobank which will own the Heavy Oil Business;

- The Reorganization will eliminate the recent negative market valuation of the Heavy Oil Business;

- New Petrobank will have a simplified structure with an anticipated cash balance of over $100 million, sufficient to fund operations for more than two years at current and expected expenditure rates;

- Existing Petrobank shareholders will receive...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details