RE:RE:RE:RE:RE:RE:RE:RE:A Share Deal could be possible? Shlinker_ wrote: Wow, Reflect, pouring it on like Perdkaoilgas...the ultimate paid pumper no doubt. Nice speach though, but this is not a buy until they decrease debt - your speculation is garbage. And LTS and LEG's chart basically tells the board your theories are garbage. And their debt level is much less than LRE's. SPE has a much better/proven management team of getting taken over. This is Spartan part III, part I and II were SOLD. So get your facts straight Reflect/Perkaoilgas. Your thoughts and speculation are not wanted nor are they warranted here.
wilwal wrote: You are correct Shlinker. This company sits in a precarious position with high debt risk and their current plan doesn't cut the mustard with shareholders, hence the valuation.
Management didn't see what shale was doing to oil and we aren't sure if they yet understand that oil markets have changed forever. Most of their blunders can be to this hubris that $100 oil was here to stay (and they weren't the only ones in the oil patch like that). Lots of oil managements thought the party would last forever. However, this isn't just another ho-hum cycle that we have seen many times. The idea of "peak oil" has been obliterated because there are enough shale basins all over the world to provide $75 or less oil for the next century or more.
This company has to get ready for the new order, and show investors that they can survive at $40 oil and prosper at $70 oil.
I'm a new investor to LRE and my thesis is that they will learn and do what is necessary. If they don't, I have made a mistake and we will see .50 this year.
You are also right about at least one valuation metric Shlinker. The NAV on this company is $1.35-1.40/share. A takeover is unlikely to occur at $1.50 at the moment. Nobody wants to hear that but the NAV is a fact. Valuation of oil flows gets it up to $3.50/share but that simply isn't going to happen until they get their heads out of the sand and make a dramatic move against debt. They have to realize that they cannot be a "growth company" anymore until they can start making cash flow at $60 oil and big profits at $70. That means more than just dealing with debt, but they have to reorient the company into the new paradigm of lower operating and admin costs by getting smart with operations and tough with suppliers so that cash squirts out at the bottom line.
I'm enthusiastic about this company at these price levels because they can fix things and there is lots of upside potential. There is money floating around out there to buy assets to allow LRE to get back on a secure footing and as longs, let's hope they go after it and get a good price for some assets. I think they know what they have to do so let's see if they can execute it.
Reflect wrote: Hey wilwal you gree with Shlinker: He Just stated that LRE has more debt than LTS & LEG or are you & Shlinker one & the same again.
"..'And LTS and LEG's chart basically tells the board your theories are garbage. And their debt level is much less than LRE's." Read more at https://www.stockhouse.com/companies/bullboard/t.lre/long-run-exploration-ltd#M40Xmc2y0zvWpF9M.99
You are a basher, not a LRE investor. You're only on this blog to cause havoc with lies & misleading info. Everything I said is correct.
SPE is sucking the life out of the properties. Prove to me I am wrong when I say SPE pumps 10,000 BOE/d; has 264,000,000 sharescommon shares out; and is trading 1.25 over book value. SPE is a little company with very few assets being pumped & suckers paying rediculous high prices for SPE.
Do your dd. That is fact & truth. In order to increase production they have to go out & buy properties & the better the property the more it costs. And as oil increases in price so do the properties - 500 mil is being generous & even at 700 mil it does not guarantee an increase of 10,000 BOE/d to 20,000 BOE/d. SPE pumps out a measely 10,000 BOE/d and has 264 mil common share out. This is ludacrous. This is a little company.
LRE pumps out 30,000 plus BOE/d & has valuable properties which you even said about Redwater being worth 500 mil. LRE has 193.5 mil shares out.
LRE is by far the superior investment. Spartan Resources is nothing but a "paper lion." SPE pays no dividend & has no future growth.
Wilwal (alias Shlinker) sell your SPE shares (its nothing but dead money) & buy LRE. Use your brains - you can buy 3 to 4 shares of LRE for every share of SPE & make big bucks. At SPE you are just sitting on your money praying Front Four & TD securities comes through in its take over of LEG like it did with Renegade & none of the big boys dump. They are getting worried. They are gonna dump SPE & you'll pay the price unless you are a pumper for Front Four.
Management didn't see what shale was doing to oil and we aren't sure if they yet understand that oil markets have changed forever. Most of their blunders can be to this hubris that $100 oil was here to stay (and they weren't the only ones in the oil patch like that). Lots of oil managements thought the party would last forever. However, this isn't just another ho-hum cycle that we have seen many times. The idea of "peak oil" has been obliterated because there are enough shale basins all over the world to provide $75 or less oil for the next century or more.
This company has to get ready for the new order, and show investors that they can survive at $40 oil and prosper at $70 oil.
I'm a new investor to LRE and my thesis is that they will learn and do what is necessary. If they don't, I have made a mistake and we will see .50 this year.
You are also right about at least one valuation metric Shlinker. The NAV on this company is $1.35-1.40/share. A takeover is unlikely to occur at $1.50 at the moment. Nobody wants to hear that but the NAV is a fact. Valuation of oil flows gets it up to $3.50/share but that simply isn't going to happen until they get their heads out of the sand and make a dramatic move against debt. They have to realize that they cannot be a "growth company" anymore until they can start making cash flow at $60 oil and big profits at $70. That means more than just dealing with debt, but they have to reorient the company into the new paradigm of lower operating and admin costs by getting smart with operations and tough with suppliers so that cash squirts out at the bottom line.
I'm enthusiastic about this company at these price levels because they can fix things and there is lots of upside potential. There is money floating around out there to buy assets to allow LRE to get back on a secure footing and as longs, let's hope they go after it and get a good price for some assets. I think they know what they have to do so let's see if they can execute it.[/quote]