Logan Energy Corp V.LGN

Alternate Symbol(s): LOECF

Energy Oil & Gas E&P

Logan Energy Corp is a Canada-based company, which is engaged in the acquisition, production and exploration of oil and natural gas. The Company is focused in the Pouce Coupe and Simonette areas of north-west Alberta on the Montney resource trend, and in the Flatrock area of north-east British Columbia. The Company has approximately 193,000 net acres of working interest, 95% Montney Crown land across three properties (Simonette, Pouce Coupe and Flatrock). The Simonette property has approximately 51 operated Montney wells primarily drilled in the gas condensate window. The Pouce Coupe property has seven wells. The Pouce Coupe asset spans the gas condensate to light oil window. The Flatrock property is undeveloped Montney acreage prospective for both gas condensate and oil development. The Company also owns a 50% working interest in its 120 million standard cubic feet per day (mmcf/d) gas plant.

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Logan Energy Corp

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Post by retiredcfon Sep 11, 2023 8:35am

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Post# 35628968

TD

Maintain their $1.40 target. GLTA

Logan Energy Corp.

(LGN-V) C$1.05

TD Checks into Logan's Operational Activity

Event

TD Provides Update on Logan's Field Activity

Impact: NEUTRAL

Logan Energy, the high-growth Montney company spun out of Spartan Delta, began trading on July 14. Despite less than two months of operations as a standalone entity, the company has been quite active. Field operations are currently focused on its two core Alberta properties — Simonette and Pouce. We looked to public data and reconciled our findings with the company.

In the following page, we have included maps of the two Alberta blocks and outline where on these properties current activity is taking place.

Key Takeaways

Simonette — At Simonette, the company has drilled a total of two wells. One of these wells (05-11-064-26W5) has already been completed and is flowing back. Completion operations on the second well (13-33-061-27W5) are scheduled to start in mid-September. We see one incremental licensed location that is yet to be spud.
Pouce — At Pouce, public data shows three licensed locations from a single pad. We understand that a drilling rig has been directed to the site and the first Logan well in this area will be spud imminently.

Our View

In addition to the administrative tasks associated with forming a new company, Logan has been quick to start field operations. By month-end, in our view, Logan will have drilled three wells (and completed two). The third well will likely be completed shortly thereafter.
From a timing perspective, the IP30 rate at Simonette will likely be known to the company by mid-October, but not likely released to the public until mid-Q4.
We view the release of the first Simonette well results as a potential positive catalyst as it could confirm our view that modern drilling/completion practices on the play will result in improved rates (and returns) relative to the legacy wells that were drilled before 2018.

For additional details on Logan, along with various financial sensitivities and TD-estimated play economics, please see our recently published initiating coverage report here.