RE:oil sector fragile in my opinion Yes, the oil sector is fragile right now and U.S. production is not favourable to us.
With LEG one is buying reserves and production at a cheap price. I note that CPG
paid $100,000 per flowing barrel or $25.00 per 2P reserve or 4.4 times cash flow
for its recent acquisition of the LTS assets. Obviously LEG is trading at a price that
is quite a bit less than these metrics. CPG also paid $1785 per net acre of undeveloped
land, LEG also has lots of undeveloped land. I also suspect that LTS was a motivated
seller of these assets.
I think LEG is a bargain at current prices and due to the large share issues with the
recent acquisitions could well become an even bigger bargain. I believe the sellers of
these 'acquisition' shares are part of the reason for the drastic reduction in price since
the Q2 report.
My strategy is to buy more when I feel these 'acquisition' sellers have exhausted their
supply of stock.