Alberta Oil - - JUNIORS -

Ge­orge Fink doesn’t make a lot of noise. He’s too busy build­ing his com­pany the right way. Since he rarely re­quires fund­ing from the cap­i­tal mar­kets, Fink doesn’t need to be promotional in or­der to drum up in­vestor in­ter­est.

One of the beau­ti­ful things about in­vest­ing along­side en­tre­pre­neur­ial man­age­ment teams is that they usu­ally own a sig­nif­i­cant num­ber of shares in the com­pany. That is the case with Fink and, as a re­sult, he pro­tects Bonterra En­ergy’s share count and cap­i­tal like the pre­cious com­modi­ties they are. Af­ter all these years, Bonterra still only has 33 mil­lion shares out­stand­ing. The ini­tial pub­lic of­fer­ing for Bonterra was done at $0.20 per share. Since then, shares have been as high as $60, and that doesn’t even fac­tor in the $30-plus of div­i­dends the com­pany has paid.

Nearly two decades ago, Fink had a vi­sion that some­day tech­nol­ogy would un­lock a whole lot more of the oil and gas that is trapped in the ground. That led him to ac­cu­mu­late a sig­nif­i­cant amount of land in the Alberta Cardium be­fore it had sig­nif­i­cant value to any­one else. He was right of course. Land that he paid pen­nies for is now worth big dol­lars for Bonterra.

Like many great busi­ness­men, Fink is a con­trar­ian by na­ture. When oth­ers are sell­ing, he is buy­ing.

In 2015, Fink had Bonterra in the fi­nan­cial po­si­tion to be an ac­quirer while oth­ers needed to sell. The com­pany picked up a very com­ple­men­tary piece of the Cardium from En­er­plus for $172 mil­lion. Had he known that oil would still be so low, Fink likely would have waited. The key point to note is that his man­age­ment abil­ity had built the com­pany to be in a po­si­tion of strength when oth­ers needed to sell.

To­day, Bonterra is pro­duc­ing just un­der 13,000 boe/d, and is still pay­ing a div­i­dend, al­beit a re­duced one. With 773 net drilling lo­ca­tions re­main­ing in the Cardium, the com­pany has years of div­i­dend pay­ing left in front of it.


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