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...

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