Orbit Gas and Oil ORG-T
An interesting play going on here.
Yesterday house 89 hit all the bids from $1.16 to $1.29 (130k shares) then made a 2.6 mil cross at $1.30.
Today house 89 did not trade any shares but there was a lot of accumulating. House 74 bought 120k and sold zero and house 79 bought 57k and sold zero. Todays volume 400k.
Todays NR
ORBIT COMMENTS ON UNUSUAL STOCK TRANSACTION AND CONFIRMS COMPANY VALUE AND POTENTIAL
CALGARY, Nov. 26 /CNW/ - Robert W. Lamond, Chairman of Orbit Oil & Gas
Ltd., stated that yesterday's 2.6 million share cross appeared to the Company
to be an attempt to obtain a strategic share position and may confirm recent
rumours of a potential hostile bid for the Company.
Mr. Lamond further stated that despite Orbit's stock price showing
excellent relative strength in the general weak Canadian oil and gas market,
that he was concerned that an opportunistic attempt could be made to purchase
a further substantial block of Orbit shares at prices substantially under
reasonable realizable values.
He confirmed his concern that this development could have resulted from
recent presentations to investors in New York, Toronto, Montreal and London,
and that the Company had indicated that an independent engineering evaluation
of the Company's assets, at December 31, 1996, proforma the significant
property acquisition and subsequent minor property disposition in the
Markerville/Sylvan Lake area, indicated the proforma value of Orbit shares was
in excess of $2.00 per share, without consideration for the results of
exploration and development activity during 1997.
In addition, Mr. Lamond commented that the recently announced nine month
cash flow per share of $0.24, and the Company's estimate of $0.34 cash flow
per share for the year, compared with yesterday's closing price of $1.21,
indicated a cash flow multiple of 3.7 times. This multiple has been confirmed
to be substantially lower than Orbit's peer group by its financial advisor,
Griffiths McBurney.
Mr. Lamond confirmed that the Company was presently producing natural gas
at record rates of 37 million cubic feet of gas per day, and that its key high
impact exploration well in Texas, was presently drilling ahead at 1,500 feet,
with an estimated total depth to be reached towards the end of December.
Mr. Lamond concluded by stating that his prime concern was shareholders
selling prematurely at unsatisfactory prices, partly related to unstable
overseas markets, and that while Mr. Lamond owns a substantial share position,
he has amply demonstrated in the recent past his determination to maximize
values for all his shareholders.
TSE: ORB
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John. The occasional visitor. |
