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Long Run Explor Ltd Ord WFREF

"Long Run Exploration Ltd is engaged in the development, exploration and production of oil and natural gas in western Canada."


GREY:WFREF - Post by User

Post by qwqwon May 28, 2015 11:42am
230 Views
Post# 23774136

a Legacy of failure

a Legacy of failureTake a company with 40% decline rates,high debt levels including $200 mil in US $, next to no
hedges (are they insane?) and now factor in a low oil price. Houston we have a problem.
Their options were extremely limited,sell it or watch it wither away.
Is LRE in the same predicament? Thanks to a lower decline rate (30%),lower debt levels and
good hedges, LRE is in decent shape.While LEG was piling on the debt,LRE's is shrinking
(expected drop of $35 mil for Q2).
LRE is in much better shape to weather the storm.
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