Likes as he thinks the whole oil sands project is going to boom. Oil prices are going to remain high over the long term. Oil will probably settle in at the low $40's for the next couple of months.
Being acquired by Marathon (MRO-N). He is buying it for the sum of the parts of the valuation. Basically what you are getting with the Marathon take out is cash and about 33% of stock. You also get a junior international exploreco, Western Zagros in Kurdistan, where there are significant light oil deposits. Market is not fully valuing this company.
Marathon Oil (MRO-N) has made an offer to acquire. Part of the deal was for them to spin off their Kurdistan assets. Stock has been trading at a premium to the offer that could mean the market thinks a higher bid is coming or if the market is ascribing more value to the Kurdistan asset than originally thought. He feels it is the latter. Be surprised to see a competing offer come in.
This is 20% of Shell’s oil sands project. Has terrific leverage to doubling its production over time. Little worried that the stock is moving up on rumour.