RE:RE:More from Dan Steffens
when2buy wrote:
Unfortunately, long term investors are getting tired of 2P NAV calculations because LTS more recent history (12>18 month) rarely gets even close.
Those that expect multiples of cash flow or assets value to justify a much higher valuation, management aren't helping explain why it won't happen anytime soon.
Take a look at
https://www.stockhouse.com/news/press-releases/2014/08/28/investor-beware-2p-reports-for-tight-oil-and-gas-plays-can-leave-out-key
This article uses Arcan os an example, a lot of it applies to LTS as well.
We don't have much prospect of coming up with the cash to drill out our P-1 reserves anytime soon.
quote " It is important to note that in a reserve report, only the proved producing reserves—what the industry calls 1P–are guaranteed to be fully funded. "
Ie: It looks like we'll have drilled 12 or so wells in Q3.
Many are shared wells, less than 1 net each.