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WestFire Energy Ltd T.WFE



TSX:WFE - Post by User

Post by bshort92on Aug 10, 2012 10:16pm
374 Views
Post# 20206523

The combined entity

The combined entity

With 126 million shares out now the float for Long Run is decent.  You got 1.8 million acres including a sizable Montney position I believe over 600 K acres. You look at what Petronas paid for Progress holders of 1.2 million Montney acres, the robust valuation for CLT with 800 k Montney acres you can see that GO's land position was a key part of the deal. Don't forget the combined entity has 100 mmboe of reserves. The WFE Viking effort being led by the "hot frac" technology component can unlock a ton of oil in that area. Once all is assembled in this 50/50 Oil to NG weighted outfit I see potential. The $430 million debt load will have to be reduced through asset sales but with 26,000 boe/d production it is decent risk reward scenario. Bill Andrew is no slouch. He is well regarded in the industry. I think Sprott's equity stake is a positive. Be careful not to overreacct as both firms are currently overleveraged. This is a win win scenario for both sides. If NG prices come back then you can double your money from here.

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