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Lightstream Resources Ltd. LSTMF

"Lightstream Resources Ltd is engaged in the exploration and development of oil and natural gas in Western Canada. Its operating areas include Southeastern Saskatchewan, Central Alberta, and North-Central Alberta."


GREY:LSTMF - Post by User

Bullboard Posts
Comment by JohnDDon Jun 22, 2014 9:27pm
421 Views
Post# 22684452

RE:RE:My Take #2

RE:RE:My Take #2
Itrabs, not sure I fully understood your question but let me take a shot at a response. I did my earlier calculations based on present guidance of 44,000 boed, knowing full well they have close to 5,000 boed up for sale. So I will take a shot at a valuation making an assumption for sale metrics.

Lets assume they can sell the  5,000 boe/d for $110k/'boed - not unresonable since they have sold high gas weighted properties for close to $115k/boed. That will bring in another $550 million. Debt is then reduced to $1,400k ($1,950 - $550k).

Current guidance is 44,000 boed, so once they sell the 5,000 boed I assume they will end up with a revised guidance of 39,000 boed.

As before, lets assume a minimum valuation of the entire company at  $100k/boed on an enterprise value basis that results in a  share price $12.50, as per calculations below.

Market cap = $12.5/share*200 million shares = $2,500k
EV = $3,900k ($2,500k + $1,400k)
EV/Boed = $3,900k/39,000 boed = $100k/boed.

I will be watching closely at the metrics when the asset sales are finalized.  That said, I believe they are adding sufficent land to the packages to will help drive srong metrics.

John


Bullboard Posts