Iron Brdg Res Inc. OEXFF

RE:RE:RE:RE:RE:Q-1 2018

[Ditto99]

Still need well results to get the people going. 2-3 weeks away. They should be getting 08-22-69-04 well on production by Summer 2019. I do not believe their other land holding well 03-17-69-03 will get put on production, ever. I believe they will drill and complete 2 more wells in 2018, exiting at a solid 5000boe/d with netbacks increasing as diff's have narrowed and WTI firmed up since Q1. There was $5/boe in UDC's which go away as production ramps which is cake. At 5000boe'd and $25/boe netback (I believe Netbacks are greater than $25/boe TODAY, not to mention upside in oil), IBR could cashflow $45mm in 2019 on a current market cap of $75mm. If you give them a 4x multiple (low on industry standards) you get to a Market Cap of $180mm, or 2.4x the current value of the company. IF they can execute my low end target Q4 2019 for IBR is $1.00/share, Base case is $1.25/share, and top end $2.25/share. For $2.25 they need to execute flawlessly with oil ramping to $90 - $100/bbl, which I also expect.