Oil & Gas Notes
On a flat day for the S&P, I lost ground with my oil & gas stocks. I closed one spec play at a loss, added to one spec play and opened another. I had a couple of other orders in that didn’t fill. Energy futures were up at the close.
Late last week, Cequence Energy (CEQXF) announced plans to purchase all the outstanding shares of Open Range (ONRRF). There wasn’t much of a premium: 1.065 shares of CEQXF for every share of ONRRF. Cequence is a small company with mostly natural gas holdings, so its shares have been hard hit as enthusiasm for the Montney has waned.
CGX Energy (CGX) has moved up recently, following news that Pacific Rubiales Energy (PEGFF) will purchase a combination of its common shares and warrants for $32 million. Pacific Rubiales already owns 18% of CGX. I had a small position in Pacific Rubiales last year; it’s a Canadian company headed by a Venezuelan with operations in Columbia, Peru, and Guatemala. The stock has performed well, but I’m wary of its governance and probably will limit any future exposure to the Guyana offshore oil play to my current holdings in Tullow (TUWLF).