Iron Brdg Res Inc. OEXFF

IBR's deal: C$2,700/Montney acre, C$58K/boepd, C$5.20/boe

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PeterM1, with all due respect, you claimed in your last post that IBR was sold for C$1,500 per Montney acre but your calculations are wrong. I will show you why. Apply also IBR's key metrics to CKE. Based on the key metrics for IBR's deal, Chinook Energy (CKE) must be sold between C$120 million and C$180 million.

CKE has more than 55,000 net Montney acres, more than 4,000 boepd production, 33.9 MMboe of 2P reserves and only C$0.5 million net debt (see guidance), so it's dirt cheap at the current price of C$0.20 per share. And dirt cheap is an understatement because CKE's current Enterprise Value is just C$45 million.


So, at C$0.85 per share, IBR's Market Cap is C$130 million.

IBR's net debt is almost C$6 million, see below:

"In connection with the annual borrowing base re-determination of its revolving credit facility, the Company’s borrowing base limit was recently increased to C$10.0 million by its lender, enhancing IBR’s liquidity capabilities. As at June 30, 2018, Iron Bridge’s net debt was C$5.74 million. "


So IBR's Enterprise Value at C$0.85 per share  is C$136 million.

Natural gas weighted IBR holds almost 50,000 net acres of Montney land at Gold Creek, see presentation below:

https://ironbridgeres.com/wp-content/uploads/2018/05/CAPP-Q2-2018-Investor-Presentation-FINAL.pdf


So natural gas weighted IBR was sold for C$2,700 per Montney acre.


Also natural gas weighted IBR was sold for C$58,000/boepd  based on its 2,314 boepd Q2 2018 production, see below:

 

"In the second quarter, average daily production was 2,314 boe/d (weighted 30% light crude oil and NGLs), representing an 84% sequential increase over the prior quarter output of 1,256 boe/d."


Also natural gas weighted IBR was sold for C$5.20/boe of 2P reserves, based on its 26.3 MMBoe of 2P reserves, see presentation below:

https://ironbridgeres.com/wp-content/uploads/2018/05/CAPP-Q2-2018-Investor-Presentation-FINAL.pdf