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Long Run Explor Ltd Ord WFREF

"Long Run Exploration Ltd is engaged in the development, exploration and production of oil and natural gas in western Canada."


GREY:WFREF - Post by User

Comment by Sumcan2on Feb 21, 2015 10:16pm
330 Views
Post# 23451981

RE:RE:LRE Valuation

RE:RE:LRE Valuationbossu, here is another way to look at it, I hope that it is fairly realistic. Also since Baytex got their debt covenants amended, chances are favorable that LRE may also get their's amended. The Bonterra transaction for 1800/ flowing boe consists of 86% oil and NG liquids and 14% NG. So I worked out a value for oil and one for NG. Lets say they based that deal on $109,000 / flowing barrel of oil and NG liquids. ($168,732,000) for and $19,111 / flowing boe for the gas ($4,379,528) Now use these values for LRE's 32000 boe/d, which consists of 13,760 barrels of oil and liquids ($1,499,840,000) and 18,240 boe of gas ($348,584,640) for a total of $1,848,242,640. Subtract $710 million and you get $5.81/share. So if the above valuation is close to reality then the share price is very under valued. The present price for oil and gas will not stay levels for ever. Even if they go lower from here they will rebound .
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