Long Run Explor Ltd Ord WFREF

Cost per barrel

[Reddale]

Sumcan2,

your math worked out similar to mine.

LRE is still making money even at the recent new low prices.

Plus they hedged their bets and sold a good chunk of 2015 production at the higher prices.

So LRE remains a decent investment and a greater financial cushion can be obtained by selling non essential properties and scaling back the dividend (if required)

[barneyj44]

Reddale 30% of there production is hedged for 2015, that number came from the horses mouth himself as Bill Andrew Emailed me back yesterday about the state of affairs, an update will come out around Dec.15. I emailed Laura at Investor Relations and got a reply from the big guy himself.

[Sumcan2]

Nat Gas has roughly a 6:1 ratio when determining a BOE it seems. Total oil production and NGL for the last quarter was 16,102/day or , 1.45M barrells. a $25/B drop would be $36.23M in less revenue. Nat Gas production of 18693 BOE/d for the quarter would be 1.68M BOE/D. a drop of $0.70/Mcf would be approx. $4.20/BOE less or $7.066M less in Quarterly rev. The total loss of rev for the quarter would

[johnathamilton]

@Sumcan - I did a back of the envelope analysis and based on USD65/barrel oil and USD3.5 NG -& at an 88 cent CAD I get close to break even cash flow. (This is substantially conservative) What's saving LRE managements hides are: 1) Hedging 2) CAD-US Exchange rates. In order to prosper in this market they will either need to reduce CAPEX (which I don't think is healthy long term

[JohnJBond]

FYI, please remember that as oil price per barrel declines, so does the royalty payment. In Canada a $1 drop in oil price in US$ is reduced by the mitigating effect of the C$/US$ exchange rate AND the royalty payment.