Hi Wet coast er,
I am far away from the coast but it is so wet here, you would not believe. Weekend tennis tournament may be cancel so I have no choice but keep spamming this fine board. Sorry.
Going back to your question... I sold my debenture last year booking capital loses. Believe it or not DG gave me the opportunity to get most of my loses back by providing cheap PDP shares and warrants. I bought PDP at 83 cents and sold this January at $1.11. Percentage wise warrant provided me even bigger gain.
Still hold small CLL position at losses and trade occasionally, hoping that some crazy investor will come around and buy us for $1.5 to $2 price range. Personally I do not think that CLL is long term investment. Even if the price of oil will go around $100/bbl, on the long run high Royalties (30%) will take a big bite from the extra cash flow.
CLL is a high cost and lowest price oil product producer. Expensive maintenance and necessary capital expenditure plus interest expenses will eat all operational cash flow. People keep referring to netback numbers forgetting that this is not a cash flow and it is provided for the illustration purposes only (see the management disclaimer).
Look what is happening at some Saskatchewan and Alberta oil plays. The payback on your Capex is in 8 to 14 months time. Some intermittent and junior producers are using their free cash flow to pay 5 to 12% dividends.
Hope you have a dry and fun weekend. Jurek
