RE: RE: recycle raio? II agree with you LRE should be valued more than LEG.
LRE cash flow for the lastquarter is .48 (excluding amalgamation cost).So we may expect $ 1.92 for 2013
I expect a cash flow of $ 1.51 for LEG in 2012.But this figure will be confirmed in a couple of weeks when they published their P&L statement.At this moment we will be able to estimate their cash flow for 2013.
As you said their debt level is much higher (464M vs 290M),capitalisation higher (143M vs110M)about the same P+P reserves 94MMboe vs83 MMboe.
Production guidance for LRE is 25000 boe/d and LEG 17900 boe/d
The only reason LEG is higher than LRE is because of the liquid oil they are producing but LRE is working to increase the Oil contnt to over 55% for 2013 or 13400 b/d
I'm deeply invested in LRE and I have confident in the new managment team.and the SP should improved in the coming months
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