Lightstream Resources Ltd. LSTMF

RE:RE:RE:RE:RE:RE:RE:Share Price

[JohnDD]

I don't think a few weeks here or there for assets sales makes much difference in the grand scheme of things. The key issue for me is that the company has close to 5,000 boe/d up for sale at time when oil assets are comanding top dollar - see highlighted sentence in announcement from Painted Pony below.

As John Wright pointed out in one of the calls, he will play a bit of "jump ball" with buyers in an effort to drive up prices. That process is probably well underway and the company has my support. My expectation is they by 3rd quarter end the 5,000 boed will be sold at excellent metrics and our debt situation wil be significantly improved - to less than 2X CF.

The company can start to take steps to really increase shareholder value that they have been prevented from taking because of the debt situtation. We could be looking at a small increase in the dividend of 1-2 cents/month starting in 2015, execute the NCIB (share buy back) even on a small scale - if prices are still in the single digits, a strategice asset purchase in Swans of around $150 million to help drive some long term growth in a key strategic area for the company.

John



https://boereport.com/2014/07/07/painted-pony-announces-strategic-disposition-of-saskatchewan-assets-for-100-million-and-maintains-2014-production-estimate/

Painted Pony Announces Strategic Disposition of Saskatchewan Assets for $100 Million and Maintains 2014 Production Estimate

July 7, 2014Marketwired

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CALGARY, ALBERTA–(Marketwired – July 7, 2014) - Painted Pony Petroleum Ltd. (“Painted Pony” or the “Company”) (TSX:PPY) is pleased to announce that it has entered into a definitive purchase and sale agreement (the “Transaction”) to sell all of the Company’s exploration and production assets in Saskatchewan (the “Assets”). The Assets and Transaction include:

• fully-funded cash purchase price of $100 million, before customary closing adjustments, with an effective date of June 1, 2014 and an expected closing date on or before July 30, 2014;
• field estimated production volumes of 980 barrels of oil equivalent per day (“boe/d”) in the second quarter of 2014 (96% oil and natural gas liquids);
• proved plus probable (“P+P”) reserves of 5.3 million boe (“MMboe”) as determined by Sproule Associates Limited, effective December 31, 2013;
• approximately 34,600 net acres of undeveloped land at June 30, 2014;
• $102,000 per boe/d, based on second quarter of 2014 field estimated production volumes.

Closing of the Transaction is subject to the receipt of all necessary regulatory approvals. Following the close of the Transaction, Painted Pony’s syndicated credit facilities are expected to be adjusted to $150 million from their current level of $175 million. Upon closing of the Transaction, Painted Pony anticipates that the syndicated credit facilities will be undrawn, allowing for further enhancement of the Company’s 2015 capital expenditure program, which contemplates drilling over 40 net Montney wells, approximately double the planned drilling in 2014.

STRATEGIC DISPOSITION

Painted Pony’s continued production growth and expanded development of its Montney project in northeast British Columbia led to the decision to pursue the sale of its interests in Saskatchewan and focus 100% of the Company’s resources and operations on its Montney project. The timing of the sale of the Company’s Saskatchewan properties has been chosen to capture the current window in strengthening global oil markets, combined with an active and robust environment for oil-weighted transactions in western Canada. As a pure-play Montney natural gas and natural gas liquids producer going forward, Painted Pony will be able to redeploy the proceeds from the Transaction towards its high return Montney initiatives and further the Company’s growth profile. In commenting on this disposition, Mr. Patrick Ward, President & C.E.O., said “Our Saskatchewan assets have provided Painted Pony with a solid foundation for the growth and development of the Company since its inception. Through the monetization of these Assets, we are confident that the reallocation of capital to our Montney resource play in northeast British Columbia will result in an accelerated pace of production and reserves growth.” The sale of these Assets represents approximately 2% of the Company’s P+P reserves at December 31, 2013. Cormark Securities Inc. and FirstEnergy Capital Corp. have acted as exclusive financial advisors to Painted Pony in respect of the Transaction.