GREY:WFREF - Post by User
Comment by
BlueCollar51on Jun 01, 2015 10:46am
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Post# 23784245
RE:Long Run Exploration Ltd. Announces Amendments to Bank Credi
RE:Long Run Exploration Ltd. Announces Amendments to Bank Credi
In my opinion the successful renewal of the Credit Facility with relaxed covenants is encouraging.
Unfortunately it doesn’t change the fact that Long Run has way too much debt.
Until they demonstrate the ability to deal with the debt issue the Share Price will remain under pressure. They have told the market that they “intend” to sell abt. $100m in assets but to date there hasn’t been much progress. The reality is that in the current market “motivated sellers” are at a disadvantage.
Comparing the “Flowing BOE” value of LRE to LEG is a bit ridicules. LEG is abt. 82% Oil and Liquids; LRE is abt. 44.3% Oil and Liquids. NG BOE’s aren’t worth much in the current market.
I have a small position in the debentures (LRE.DB). They don’t have as much “potential upside” as the common shares but I get paid well to wait.
As Always; Do Your Own Due Diligence; It’s Your Money !!