Chinook Energy Inc. Common CNKEF

Great Gold Creek Deal! Chinook Energy (CKE) has C$31M cash!

[InvestLargeC]

As of March 2016, CKE had C$24.4 million cash. 

Pro forma today's deal at Gold Creek, it adds C$7.5 million, so its cash goes to C$31 million.

 

So CKE sold those Gold Creek assets for C$326,000/boepd and C$54/boe of 2P Reserves!

 

Those Gold Creek are very prolific with superb economics. Mark Papa's Riverstone Seneca US-based fund paid more than $150,000/boepd for privately-held CIOC's Gold Creek assets in December 2015. Privately-held CIOC drills right next to CKE.

 

And no impact on production and 2P Reserves because divested assets had just 23 boepd and 138,000 boe.

 

And CKE's production capacity (including the shut-in wells) is 7,400 boepd and holds 30.4 MMboe (2P Reserves).

See: https://www.cioc.com/cioc_news/155/2015