GREY:LGVWF - Post by User
Post by
bshort92on Feb 19, 2014 11:09am
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Post# 22224974
Reality of the situation
Reality of the situationLNV per there Q3 earnings report gets $43 netbacks on their 6000 boe/d production spaced primarily over two properties: the Alberta Cardium and in SE Saskatchewan in the Bakken plus about 500 boe/d from a Lloydminster heavy oil effort near Lashburn. You need to examine recent like sized asset sales: compare the netbacks, reserves and production. Consider the acreage, undeveloped, developed, infrastructure and carry over tax pools. If one can do that and then extrapolate what a sale would fetch in terms of flowing boe/d on that transaction one can then understand why today's announcement resulted in the shares trading lower. Not quite to the level of AAV announcing the sale of the 45% position in LNV but more to the point that the assets might not be as valuable as some are advocating.