Long Run Explor Ltd Ord WFREF

RE:RE:RE:RE:RE:RE:RE:RE:Long Run vs. Spartan Energy

[Karmanow]

If management can sell the Redwater assets LRE shareholders will move into a much better place ... considering the current market and perception of the current $748m of debt. If we consider two recent deals we can predict where LRE will be if the Redwater sale materializes. In April 2015, Surge sold 4750boed for $430m or $90,000 per boed. In February 2015, Renegade sold 1450boed for $109m or $75,000 per boed. The average would be $80,000 per boed. If they sell the 8140boed from Redwater at $80,000 per boed, we can expect $650m. $748m of debt - $650m from sale = $98m left of debt. Production would move from 35,000boed - 8140boed (redwater) will leave LRE with 26,840 boed. The market will respond accordingly, and the value LRE shares will rise. Management can then concentrate on the new deep basin, low cost developments. Just imagine the share price reflecting the value of LRE assets ... with less than .5x debt ratio. (26,840 x $80,000 per boed = $2.1B divided by 193m shares = $11.10 per share value ....what a difference a sale of non core assets can make!