GREY:LSTMF - Post by User
Post by
JohnDDon Sep 09, 2013 9:02pm
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Post# 21728369
Swan Hills - Itrabs
Swan Hills - ItrabsItrabs, I think it's an additional 45 drilling locations. Last presentation I have for August indicated 175 drilling locations, that represents a 25% increase. Clearly they are accumulating land in Swan Hill, which they make very clear in the presentation they intent to do.
Given that strategy, it would make sense for LTS to put in a competitive bid for Arcan's Deer Mountain assets that they are selling, I believe production is around 1,300 boe/d. At a cost of $100k/boed/d that would cost $130 million. Clearly the company can not afford it unless they are trying do a big deal to sell some of their other non-core assets.
They could sell their Durvenay lands. They have 130 sections * 640 acres/section *$2,800/acre (this is the price they sold the first 46.5 section sections at) = $233 million. They could still have a few dollars left over to pick up some Trioil assets.
Makes sense to focus your efforts in a few key plays rather than spread yourself out too much.
Sure would be nice if they can translate some assets that will not produce income in the next 5 years into assets that can produce income today or the near future.
John