Long Run Explor Ltd Ord WFREF

RE:RE:RE:RE:RE:LRE Valuation

[sunnysidetnc]

I called the investor relations rep at LRE and asked some questions.  They feel their stock was oversold in the panic of the oil price decline, and feel that at a price of 1.12 a share , the stock is far undervalued.   Investors likely were frightened away and are coming back tentatively to names that are better known, or  are larger companies or have been in this business longer.   LRE  is prioritizing paying down the debt.to keep the company healthy.   In addition, the timing of their asset purchases and sales worked against them as it coincided with the big decline in oil..
The next financial report is due out in early March,  but she wasnt able to disclose details.  I read between the lines that it may be good news.  More favourable info - they are hedged to sell their oil at higher prices for some time yet  while oil is down,   they can get oil out of the ground and transported for about $15 a barrel so there is good margin, and the properties they own are good producers.,  the wells are not very deep.    I was able to see that the insiders had bought significant shares in the company  recently.  The company insiders are in a blackout for buying shares,  so cannot buy any more until after the report is made public.  My takeaway is that this is a good company, that has been unfairly devalued.  Amazing what you can find out by making a call and talking to people...... I bought shares today and  am willing to be patient until LRE comes back.