Production over 4000 boe/d
So if production is over 4000 boe/d say it is at 4025 and RE trades at $2.30 a share then with 42.5 million shares fully diluted out RE has a market cap of $97.750 million or with at the high end $18 million of debt the enterprise value is $115,750 million or $28,750 per flowing boe. This is a great multiple to begin the drilling of the 37 net sections accumulated at Onward for the commencement of Viking light oil drilling. I see 6000 boe/d end of 2014 with greater cash flow, improved netbacks, lower decline rates, more emphasis on horizontal drilling, increasing rail transport of production to narrow WTI/WCS differentials and debt at a very manageable level say under or around 1 times annual cash flow . Shares are still a bargain.This story might just be taking flight.