Lonestar Res Ltd New LNREF

RE:RE:RE:PT $1.35

[jerrybe]

Hi,

Sorry for my late reply, I had completely forgotten I had posted on this board. I only took a small position in LNREF. And the info I mentioned came straight from the Q2 press release of the firm.

They do not have frequent updates. See:
https://www.lonestarresources.com/

It was the Wyllie Group Pty Ltd that sold a 5.3% stake in the firm. They focus on smaller firms and Lonestar had matured relative to the type of firms they invest in. A director of the firm was part of the Wyllie Group and logically, he is stepping down. This is not a judgment call on the firm, rather the fact that given Lonestar's growth into a more mature oil and gas producer, it did not fit their investment philosophy anymore.

The last they said was that they had fixed those issues but I think it will take at least Q3 results to "reassure" investors that they got it all back on track.

I think their Bakken acreage could provide some nice upside. What seemed to be acreage on the fringes of the play seem to offer more potential than once thought. They got it very cheaply, as land around them gets proven, they will be able to package it nicely to a partner (or downright sell it). 

At this point, they need more contiguous acreage in the EagleFord and they will do well. Management seems to be extremely savvy. I am sticking around to see what they can do.