Chinook Energy Inc. Common CNKEF

RE:Great Deal, Savings 26%, Hedges at C$3.2/GJ, Cash at C$29m

[George98]

I apologize to this user who rated my FACTUAL posts with 1 star. Sorry. I feel you.
My FACTUAL posts do not help your agenda.

George98 wrote: Excellent news is out today and CKE becomes a pure Montney producer focused on the Birley/umbach acreage, next to Strom (SRX), ARC and private equity backed producers like Saguaro, UGR, Black Swan etc.

The 3 new Montney were drilled with significant savings of 26%. So the total cost per Montney well will be less than C$4.5 million each that was originally budgeted.

The drilling of these wells was completed on schedule and under budget by approximately 26% with average drilling costs of approximately C$1.28 million per well (C$1.12 million, net). 


CKE exits 2016 with surplus of C$13.5 million while it had originally projected in November a surplus of C$13 million. This means it currently holds about C$18 million CASH.

Another strategic deal today. it sells its Gold Creek Montney assets for C$10.5 million which is well above their NPV-10. It sold it for C$105,000/boepd and C$47/boe of 2P Reserves.

Add the cash from today's deal to the existing cash, and CKE currently holds C$29 million in CASH.


So CKE's Enterprise Value now at C$0.48 per share is just C$70 million!


And the Gold Creek deal alone today gives CKE money for 2 additional Montney wells in Birley.

And excellent new hedges at C$3.20/GJ!

New Credit Facility that adds liquidity although we will not need it because proforma today's Gold Creek deal, CKE currently has C$29 million in CASH. 

And ZERO debt.

And CKE is currently working to sell its Knopcik Montney acreage too. The Knopcik sale will add more cash for additional Montney wells in Birley/Umbach in 2017. 


https://web.tmxmoney.com/article.php?newsid=4979216237119624&qm_symbol=CKE