Lonestar Res Ltd New LNREF

RE:RE:RE:Nice gain in Aussie last night- Up 13.5%

[jerrybe]

I just bought today after the press release, which can only be qualified as great within the context of these low prices.

This management is doing everything right. It is clearly making small bolt-on acquisitions from weaker players around them. Well performance is at or above curve everywhere they drill. Financing is secured. Operating cash flows will more or less cover drilling costs. Drilling costs per well are coming down hard. These are serious producers. They hedged more also at relatively high prices (not sure how they managed $80 hedging for next year but we will take it!). And again, this firm is keeping the market in the loop. After a poor Q2 last summer, the firm has had two excellent quarters with Q3 and Q4 2014 both being record quarters for the firm. 

Accumulating in the teens feels about right. I think it is one of the best run firm in the small O&G space. The EagleFord focus means that WTI is actually what they get. 

Not sure when they will be able to monetize their Bakken asset but they are taking all the right steps on that front too. I expect a sale in two or three years. I expect the stock to be much higher by then.

GLTA!