Lightstream Resources Ltd. LSTMF

Divestments - My Take

[JohnDD]

Overall, I think this is great news that they completed these final divestments. With softening oil prices, I was concerned that they may only sell a small portion of the remaining assets for sale - because the prices being offered were below their threshold.

With respect to sale metrics, thanks JJgrey for pointing out that CPG assigned $50 million in value to non-producing land.  I believe that LTS has been goosing the metrics for all their divestments this year by adding a bunch of non-producing land, then doing the metrics on the oil production.

I think CPG's $100k /boed is a more reasonable sale metric. That said, I am fine with the metrics - heck the EV value of the entire company is only ~ $75k/boed. I am happy to see them sell the production and land since their capacity to exploit what they had/have was/is stretched.

I have been adding to my position recently, since I believe the stock was way oversold. and will sell off some into strength over the coming weeks. I will continue to hold a core postion, just believe that trading a portion makes a lot of sense for this stock.

I always believed John wanted this divestiture behind the company - now the management can focus on building this company. I believe this is an important milestone and turning point fo the company and we should all be pleased. I know I am.

With some consistent execution and share buybacks, I think this company should do well over the next year.

I expect the stock will be up on the news.

John