Kicking Horse Energy Inc. V.CEX

Since CEX did not join in on the discovery

[stateside]

As evidenced by the lack of share price increase or even a mention on their website on an updated presentationation, we must go to Donnycreek Energy and marvel at the discovery hole and share price appreciation via their presentation:

https://donnycreekenergy.com/siteFiles/88/files/Final_DCK_Presentation_2pics_May2012.pdf

CEX paying the price for dancing with the devil.

stateside

[mouserman]

Volume before appreciation. Patience  is needed here as the junior resource markets have been terrible of late. Sell in May started in April and hasnt slowed much. There are going to be  some real bargains come july and august , and CEX will be one of those.

[stateside]

Come September, if CEX hits like on the first one, they will be doing 2,000 bpd of condensates net to them.  At $50,000 per flowing barrel (conservative based on similar area transactions), that's a $100 million market cap or over $.50/share.  Then they have over 100 more wells to go LOL.  My only fear is that they get taken out too soon.   stateside  

[stateside]

Two other positives as if the prior post isn't enough.  Contact has no debt.... so unlike 75% of the energy juniors out there with debt, they won't have their credit lines cut and be in a dangerous cash position.  Also, they were profitable last quarter both on a net income and cash flow basis from their Stoney Creek field.  But who cares - certainly not the market at this

[Footlong1]

How do you get 2,000 bpd on the 2 wells? CEX owes 25% interest on 2 wells producing 2,500 bpd each = 1,250 bpd net to CEX, correct? Also, I think the debate between buying Donnycreek and Contact is an interesting one...Donnycreek owns a 50% interest in the remaining locations. So, assuming a second 2,500 bpd well (1,250 net to Donnycreek) plus the approx. 1,000 bpd on the existing

[stateside]

Hi, Contact holds 37.5% before pay-out, 25% after.  The last well form the press release: CONTACT EXPLORATION ANNOUNCES KAKWA MONTNEY TEST RESULTS OF 2,532 BOE/D (950 BOE/D NET) Also remember CEX is already profitable with their production on the eastern atlantic plus have a discovery south of this field.  They also may not need to finance again if these wells get tied in by September

[Footlong1]

1. CEX holds a 37.5% interest before pay-out...how much time before pay-out is complete? 2,500 bpd x $35 netback = $87,000/day. Cost to drill & complete approx $8.8 million...so in about 100 days or just over 3 months Contacts share of the well drops to 633 bpd & Donnycreeks share goes up to 1,250 bpd (assuming zero decline rate).  2. Note in the press release you quote

[brandonn]

D-Creek provided update to the discovery well. Head on over to their board.