Cardinal Energy Ltd (Alberta) T.CJ

New Acquisition - (quick napkin numbers)

[JayBanks]

Just some quick fun numbers that are loosely accurate...

25 million cost on 155.737 million shares = it cost each share 16 cents for this purchase

900 barrels per day achieving the net back from Q2 of $32.51 = $29,259/day x 90 days = $2,633,310 per quarter of FCF divided by the 155.737 million shares = 1.7 cents per share per quarter (this was of course at lower priced oil so the next backs are somewhat higher so that might be above 2 cents per quarter on Q3/current numbers)

25 million divided by the 2.633 million of FCF of Q2 = 9.5 quarters before this pays itself back (again Q2 being lower oil prices, Q3/current might make the math work out closer to 8 quarters)

These are just fun to look at for mild perspective...

[Quintessential1]

LOL @ they got GXE for $25MM (I know you were joking) Love the napkin math thanks for doing it. Here is some of mine.  900 Boe/d for $25MM   GXE produces 5800 Boe/d (max) 5800 / 900 = 6.44 x 25 = $161 MM  Leave GXE alone and pick up 6 or 7 more of these if possible. GLTY and all

[JayBanks]

Hehe, that was a shot to throw out there for a few reactions... I agree that these are optimal, but they have to be on the market, we seem to grab 2-3 of these little things every year, and I like how easy it was to finance... Most of these transactions are like many sports trades, they are investigated well in advance they aren't just thought up last week. This one might have been brewing

[kavern23]

I wouldnt use this purchase price as much of a guildline on valuations as Cardinal could easily have paid some decent value for the drilling location prospects...assuming they are in clearwater at figurelake. What CJ got is also more valuable is 500 out of 900 boe they got is clear water so that means it has to have been drilled in like last 3 years....not an old 1980;s well that is "huffing

[Quintessential1]

Well it got CJ a $3.50 valuation based on the same metrics LOL.  I guess turn about is fair play. I was surprised that on an oil dump and oil producer share price dump day that GXE closed green. Maybe they got their offer? GLTY and all

[egee]

They call that coincidece... right.....? write!!

[Quintessential1]

Is it?    Rite!

[egee]

Ryte *the (e) is sylent

[Quintessential1]

Make the (t) silent and we can drink it.  I'm not sure Ryte is a word.  Wright? Looks like you were correct about the coincidence part though as they droped back down again. Anybody got a bottom for WTI this cycle?    CJ picked a good time to buy and announce as it might not be looked at as favourably today. GLTA

[meritmat]

Bit off topic.   What oil price do they need to maintain div thank you 

[JayBanks]

  Sub 70 oil (I'm pretty sure we have posted the company number and guidance in the past 2 months here if you scan back as this issue comes up almost monthly), and the new acquisition helped drive it lower... @ 90 they produce around 13-16 cents/month/share FCF... We are likely to get an updated number from the company in the next few months...  

[JayBanks]

  Just to back the FCF numbers up... as per the last quarterly @71.56 26.323 M reported FCF after CAPEX 20.357 M CAPEX = 46.68 M / 158.513 M Shares outstanding = 0.2945 Cents per share / 3 months in quarter = 0.098 cents per share per month Again @ 71.56 Oil...

[Pottsy]

Thanks JayB for the reminder.   P

[meritmat]

  thanks.  I just get nervous when I see such a high div payout.  Then I doubled my position and oil dumped 10 bucks lol