The acquisition by International Petroleum Corporation (IPCFF) of Granite Oil (GXOCF) should come as no surprise. The latest reserve report showed a substantial amount of capital investment needed for a company this size and the company did not have the cash flow to support that kind of investment. The low price may have shocked investors not following the missed guidance over the years combined with the declining production. The declining production clearly offset the rosy reserve report. This is a friendly merger that both managements have agreed to.
Granite Oil originally