We have  

.....,  light oil at 653 barrels per day ,hedged at $77.50 US per barrel.

.....Natural gas at 1200 boepd, hedged at $23 US per barrel.

.....1150 barrels of NGLs per day, at an average price of $30 US per barrel.

.....900 bpd of unhedged light oil at $62.50 per barrel

 .... 2100 boepd of unhedged natural gas at the EIA forecast of $20.00 US per boe

Putting all of this together, we have as 2015 proximate sales from energy production.....

HedgedLight oil....      $18.5 million US
NGLs....... ,,,,,,,,,,,,        $12.5 million US
Hedged gas.... ...........$10 million US
Unhedged gas............$ 15.5 million US
Unhedged oil .............  $20.5 million US

Total 2015 Production sales = $76.0  million US

I assume 2013 all in operating costs, less interest, of $40 per barrel for light oil and $11 per boe for natty gas....to be conservative.

NGLs come with the wet gas production, so their cash costs will be relatively cheap.

I assume $10 per barrel should easily cover these costs.

So, all in cash flows, except interest payments, will be about $ 37.5 million US.


I estimate interest charges of about $8 million US, which leaves free cash flows of about $19  million US.


As for Wells Services,  proforma had $37 million US in  short term P $ A and $30 million US in external decom for a total of $67 million US.

I remove $15 million for $Q4/2014 which leaves about $52 million remaining for 2015.
( they also had about $55 million in longer term contracts ).

I use 55 % GM for external and 20 % for internal for a blended gross margin of about 37 %.

This results in cash flows from P and A at about $20 million for total cash flows of about $57.5  million US or about $70 million in C$ or about $0.22  per share.

This should be adequate to pay all capex, interest charges and pay down a nice chunk of debt.

Based on my current information, this seems quite reasonable if not conservative.