Iron Brdg Res Inc. OEXFF

RE:Velvet could use IBR to go public

[Ditto99]

IMO, IBR will have to issue equity. I have them with $2mm in the bank with a $5mm available credit that they won't touch at the end of the year. This assumes they CF $10mm in '19. That get's them 02/08-21 and 00/08-21 on steam along with 03-17,  08-22 step outs which should be competed mid-summer. There is gas infrastructure in the ground, will have to re-activate a pipeline. with oil and water likely trucked in to their battery at 02-23.  08-25 looks to be online now as well according to Feb data. it flowed for 8 days, making 268bbl/d, this well was frac'd with the previous management team, A sub-optimal program which is why rates are lower than the expected 400-500bbl/d 08-21 wells. This well should be on full time production, March public data which comes out in ~10 days will confirm. 

With a higher base production they probably CF $20mm in 2019 but that doesn't get them more than 3 wells in the ground and that assumes no infrastructure spending. 

All things point to an equity raise, in the ~$15-$20mm range, IMO. This will provide line of sight to growing production from ~1,900 boe/d to 9,000 boe/d (at a lower gas %). I would bet this news comes with the well results to help balance the negativity of said equity raise the stock will still probably trade up on news of an equity raise, IF the wells come in at 450bbl/d+ 

If they can grow to 9000boe/d by Q4 2019, at $35k per flowing they should be valued north of $300mm. Their current market cap is $75mm, 1/4 of what late 2019 valuations can look like. Not considering infrastructure, you only need 9-11 wells drilled in the next 19 months to hit that.