RE:RE:RE:updatesI am pretty sure that the company will have a thrid quarter in a row that it generates free cash flow. I believe last quarter it was ~$9 million of FCF. With higher production and just about as good a netback another ~$9 million (at least) is quite likely. So as their cash balance grows, their net debt decreases. I believe that as of this quarter they will have zero net debt and a cash balance so their balance sheet is getting more stellar with each passing quarter. At the current capex of $247 million they should be generating $50 million of FCF next year if crude holds up around the current level. That translates into a multiple of ~20 times FCF which is pretty impressive a metric in its own right as few oil and gas companies even generate free cash flow.
On a reserves basis, the company is rediculously cheap and the current $2P NAV per share is ~$7.50 so the company is trading at only 54% of its 2P NAV.
Bankers just needs to have decent crude prices as a heavy oil producer to really outperform its oil and gas production peers and the market in general. So I hope the momentum continues with this quarterly financial results release and they can report some marketing moving news on the secondary recovery pilots.