Chinook Energy Inc. Common CNKEF

https://www.psac.ca/business/gmpfirstenergy/ Sta 2 $2.65

[Bean_and_Dunn]

According to my observations and calculations.  

Chinook's Q4 will be ahead of Q2 by over $2 million in cashflow. The company should I think be slightly 
positive in regards to income as much negatives have been eliminated. In the first quarter $721 thousand
was spent on severance costs. Also in the first half $238 thou was spent for share based compensation.
I believe these two items wlii not repeat in the last half of the year. 


At a price of $2.50 per mcf which price it was last Chinook will be ahead by 

$2,221,619

  
compared to the second quarter results. This is based on company predictions of an average 
of 4,400 BOE/d. This is based upon a production of 5,000 BOE/d as of August 9th 2018 and
an exit production of 4,100 BOE/d.

Chinook had cash inflow from operations of $1.223 million for the three months ended June 30th 2018.
With the much improved prices they should generate somewhere around $3.4 million. This will not only 
eliminate debt, but will allow them to begin development of their 550 locations. 

At present prices Chinook can begin building 1 new well per quarter out of cash alone. It is probably 
more economical to drill and complete 6 wells from one pad, but even drilling and completing 2 or 
perhaps 3 would get them going in a noticeable fashion.

Can-US Exchange Rate (US ¢)	77.25		-0.10	-2.9		|	79.58	-2.33	77.69
COMMODITY NEWS
						|			Average
			10/5/18			|	10/5/17	17/18	Price
Natural Gas			Close	Change		|	Close	Change	YTD
			—————-	————			————–	————	————–
Aeco Spot	(C$/mcf)		2.58	-16	¢	|	-0.03	2.61	1.55
Differential (H. Hub/Aeco)	(C$/mcf)		1.66	2	¢	|	3.84	-2.18	2.21
Aeco 12 Month Strip (NGX)	(C$/mcf)		1.80	-1	¢	|	2.18	-0.38	1.60
Aeco Calendar Strip 2019 (NGX)	(C$/mcf)		1.75	-1	¢	|	2.22	-0.47	1.65
Station 2	(C$/mcf)		2.65	20	¢	|	0.53	2.12	1.49
Alliance ATP	(C$/mcf)		3.29	1.50		|	1.09	2.20	2.08
Dawn	(C$/mcf)		3.95	36	¢	|	3.45	0.50	3.73
						|
Henry Hub Spot	(US$/mmbtu)		3.28	-11	¢	|	3.03	0.25	2.92
NYMEX Oct18	(US$/mmbtu)		3.14	-2	¢	|	2.92	0.22	2.86
NYMEX 12 Month Strip	(US$/mmbtu)		2.90	-1	¢	|	3.03	-0.13	2.86
NYMEX 2019 Strip	(US$/mmbtu)		2.84	0	¢	|	3.04	-0.20	2.78
						|			Average
			10/5/18			|	10/5/17	17/18	Price
Crude Oil			Close	Change		|	Close	Change	YTD
			—————-	————			————–	————	————–
Synthetic Crude	(C$/bbl)		67.75	-1.20		|	68.97	-1.22	82.47
Edmonton Mixed Sweet	(C$/bbl)		63.87	-1.20		|	62.75	1.12	75.85
Western Canada Select	(C$/bbl)		37.98	-2.20		|	49.69	-11.71	55.04
Edmonton Condensate	(C$/bbl)		85.55	44	¢	|	66.33	19.22	84.37
Differential (WTI/WCS)	(C$/bbl)		58.25	2.34		|	14.14	44.11	31.23
Differential (WTI/Synthetic)	(C$/bbl)		28.48	1.33		|	-5.16	33.64	3.79

MARKET NEWS
						|			Average
	10/5/18			YTD		|	10/5/17	17/18	Price
	Close		Change	Change		|	Close	Change	YTD
	—————-		—————-	————			————–	————	————–
Dow Jones Industrial Average	26,447		-180	7.0	%	|	22,775	3,672	25,130
NASDAQ	7,788		-91	12.8	%	|	6,585	1,203	7,505
S&P 500	2,886		-16	7.9	%	|	2,552	334	2,765
Amex Oil Index	1,582		-3	18.4	%	|	1,221	360	1,449
S&P/TSX Composite Index	15,946		-61	-1.6	%	|	15,776	170	15,974
S&P/TSX Cdn. Energy Index	193		-3	0.0	%	|	190	3	193
S&P/TSX Oil & Gas Producers	1,543		-22	-6.2	%	|	1,617	-73	1,588
S&P/TSX Oil & Gas Services	724		-11	-9.1	%	|	841	-116	760
						|
Can-US Exchange Rate (US ¢)	77.25		-0.10	-2.9		|	79.58	-2.33	77.69
10Yr Gov't Canada Bond	2.60	%	0.04	0.56		|	2.10	0.50	2.27
COMMODITY NEWS
						|			Average
			10/5/18			|	10/5/17	17/18	Price
Natural Gas			Close	Change		|	Close	Change	YTD
			—————-	————			————–	————	————–
Aeco Spot	(C$/mcf)		2.58	-16	¢	|	-0.03	2.61	1.55
Differential (H. Hub/Aeco)	(C$/mcf)		1.66	2	¢	|	3.84	-2.18	2.21
Aeco 12 Month Strip (NGX)	(C$/mcf)		1.80	-1	¢	|	2.18	-0.38	1.60
Aeco Calendar Strip 2019 (NGX)	(C$/mcf)		1.75	-1	¢	|	2.22	-0.47	1.65
Station 2	(C$/mcf)		2.65	20	¢	|	0.53	2.12	1.49
Alliance ATP	(C$/mcf)		3.29	1.50		|	1.09	2.20	2.08
Dawn	(C$/mcf)		3.95	36	¢	|	3.45	0.50	3.73
						|
Henry Hub Spot	(US$/mmbtu)		3.28	-11	¢	|	3.03	0.25	2.92
NYMEX Oct18	(US$/mmbtu)		3.14	-2	¢	|	2.92	0.22	2.86
NYMEX 12 Month Strip	(US$/mmbtu)		2.90	-1	¢	|	3.03	-0.13	2.86
NYMEX 2019 Strip	(US$/mmbtu)		2.84	0	¢	|	3.04	-0.20	2.78
						|			Average
			10/5/18			|	10/5/17	17/18	Price
Crude Oil			Close	Change		|	Close	Change	YTD
			—————-	————			————–	————	————–
Synthetic Crude	(C$/bbl)		67.75	-1.20		|	68.97	-1.22	82.47
Edmonton Mixed Sweet	(C$/bbl)		63.87	-1.20		|	62.75	1.12	75.85
Western Canada Select	(C$/bbl)		37.98	-2.20		|	49.69	-11.71	55.04
Edmonton Condensate	(C$/bbl)		85.55	44	¢	|	66.33	19.22	84.37
Differential (WTI/WCS)	(C$/bbl)		58.25	2.34		|	14.14	44.11	31.23
Differential (WTI/Synthetic)	(C$/bbl)		28.48	1.33		|	-5.16	33.64	3.79