Lightstream Resources Ltd. LSTMF

Whitecap Resources

[JohnDD]

Whitecap Resources picked up 6,500 boe/d at a cost of $493 million, see below. That works out to ~$107k per boed/d. They are low decline rate wells - in the mid teens.

That would suggest to me that the $80k per flowing boe/d I used to value LTS assets at $11.50 per share is not too far off.

John

https://boereport.com/oil-and-gas-news-headlines/features/whitecap-resources-inc-announces-acquisition-of-strategic-long-life-low-decline-light-oil-assets-500-million-financing-increased-dividend-by-10-and-increased-2014-guidance/

Whitecap Resources Inc. Announces Acquisition of Strategic Long Life, Low Decline Light Oil Assets, $500 Million Financing, Increased Dividend by 10% and Increased 2014 Guidance

March 17, 2014Marketwired

CALGARY, ALBERTA–(Marketwired – March 17, 2014) - Whitecap Resources Inc. (“Whitecap” or the “Company”) (TSX:WCP) is pleased to announce that it has entered into an agreement to purchase certain strategic light oil assets focused primarily in Whitecap’s Pembina Cardium / West Central core area, as well as at Boundary Lake in northeast BC, which is located just northwest of its core Valhalla area. Total net consideration is $692.7 million after giving effect to the disposition of certain Nisku natural gas production and related facilities located in the Pembina area to Keyera Corp. and deducting estimated purchase price adjustments of $49.4 million at closing (the “Acquisition”). The Acquisition is highly accretive to Whitecap and adds a concentrated land and operating base with 6,500 boe/d (83% oil and NGLs) of high netback production with a low base decline rate of 16% and significant low risk oil reserves upside. The Acquisition includes material facilities infrastructure and the assets being acquired will be operated by Whitecap providing for low cost future development and a near-term reduction in overall operating costs.