GREY:WFREF - Post by User
Comment by
VentureCapital3on Jun 12, 2015 4:03pm
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Post# 23825922
RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Sell all or some.......
RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Sell all or some......."...assuming an oil price of US$52.50... LRE has a value of $3.20 per share..." What are the other asumptions??? Proved and producing oil reserves were 15M on 31 December 2014. Total oil reserve were 40M. Most are not developped and if you consider the CAPEX will not have any value at US$52.50. LRE has also LNG and NG reserves (some developped and some not). 85M is more like a mix of oil, LNG and NG. What are the price assumptions for LNG and for NG? I need no calculation to know LRE value at last quater prices would not be $3.20. Actualy it would not cover the debt. On her $40M operating cash flow, $25M were from the hedging program. Ok, average WTI was at $48 and not $52.5. LRE will have a future if oil, LNG and NG move North not at $52.5 or at $60. Why do you think rigs number is 50% lower than 6 months ago? Anyway, his $3.20 per share looks like the guys assumed that all reserves were proved, developped and producing and no more capex would be required and that LRE has hedging for ever and no dedt... Sorry, but it is to far from the reality.