GREY:CNKEF - Post by User
Post by
stockfyon Sep 19, 2018 4:10am
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Post# 28644496
Based on IBR's deal, CKE must be sold at least C$120 million
Based on IBR's deal, CKE must be sold at least C$120 million As shown in my previous post, the key metrics for IBR's deal are C$2,700 per Montney acre, C$58,000 per boepd and C$5.20 per boe of 2P reserves.
Chinook (CKE) has more than 55,000 net Montney acres, more than 4,000 boepd production, 33.9 MMboe of 2P reserves and only C$0.5 million net debt in December 2018 (see guidance).
Also IBR has 70% natural gas while CKE has 85% natural gas. But IBR's Montney land package at Gold Creek was problematic and non-contiguous while CKE's Montney land package is delineated and contiguous that maximizes efficiency and scale because it allows long horizontal wells.
Including these parameters into the calculations, and based on the key metrics for IBR's deal, Chinook Energy (CKE) must be sold between C$120 million and C$170 million.
CKE's current Enterprise Value at C$0.20 per share is just C$45 million.
The potential upside is tremendous.