RE:sprott has lost shirt on lre
sound and fury: I'm just not quite sure what you are getting at. Sprott has been & still is a long term investor in Long Run Exploration & the former Westfire & Guide. Sprott holds 23,000,000 shares of LRE representing 11.89% at an average of $3.19/share.
I’ve mentioned a number of times before; I do not take my dividend & count it towards my principle investment to lower my share price. The dividend is my earned taxable reward. Growth reward is for my principle investment. Applying the dividend return to fudge numbers for a lower sp may paint a rosy picture but is very deceptive.
Steve Yuzpe President & CEO of Sprott Resources sits on the BoD. He is very well qualified for the position & knows how to make hard decisions in difficult times with a proven track record.
https://www.stockhouse.com/news/press-releases/2015/05/07/long-run-exploration-ltd-announces-director-election-results-from-the-2015
As to some devious plan that you are eluding to; I don’t think so. In fact; I find Sprott’s position in LRE as a positive. With them having so much money invested I find it reassuring that Sprott would maintain a minimum of $3.00/share in a complete takeover which is consistent with many analysts & LRE’s book value.
Sprott definitely has not lost their shirt on LRE. Read LRE’s strategic plan & directive guidance & Q1 for 2015 & everything is falling into place beautifully. LRE are meeting their target goal of production; becoming leaner & meaner & getting rid of non-core assets.
What this means is LRE is cleaning house. In fact these non-core assets could be a liability to the company costing more to maintain & explore than worth or they could be sold at a loss or they are not worth developing or pumping anymore. Companies in the oil fields are always buying & selling small properties or acquiring leases – it is the nature of the business.
A good example of selling assets is the recent sale by Surge Energy. Here, Surge is in a positon brought on by debt & either has decided or is forced to sell a major acquisition for 430 million to lower their debt & also lowering their production by
“…23 mmboe of independently engineered Proven plus Probable reserves, and approximately 4,750 bopd crude oil production…” https://www.stockhouse.com/news/press-releases/2015/04/27/surge-energy-announces-continued-expansion-of-crude-oil-discovery-at-shaunavon
“…Long Run currently has non-core property disposition packages that are being actively marketed as part of our ongoing asset rationalization process. For 2015, we are targeting the sale of 1,000 to 4,000 Boe/d of non-core assets. These potential sales have not been included in our guidance or budget for the year. Any proceeds from the sale of these assets would be used to strengthen our balance sheet through debt reduction…” https://www.stockhouse.com/news/press-releases/2014/12/15/long-run-exploration-announces-its-2015-budget-and-intention-to-maintain-its
A comparable sale would be if LRE were to sell a core asset such as Redwater. Then one would be justified to say LRE is selling assets to pay down debt. From the info I’ve read; LRE has not indicated they are selling Redwater & any sale of Redwater are just spread rumors.
Redwater is part of LRE’s EOR (enhanced oil recovery)
“…We will continue a strong focus on advancing enhanced oil recovery ("EOR") projects in the Peace River Montney and Redwater Viking project areas. Long Run will steward towards a sustainable model for 2015, funding our 2015 capital budget and dividend payments with funds flow from operations…”https://www.stockhouse.com/news/press-releases/2014/12/15/long-run-exploration-announces-its-2015-budget-and-intention-to-maintain-its
https://www.newswire.ca/en/story/1358665/sprott-resource-corp-and-long-run-exploration-ltd-close-67-7-million-secondary-offering-of-common-shares
Sprott Resource Corp. and Long Run Exploration Ltd. Close $67.7 Million Secondary Offering of Common Shares
TORONTO, May 21, 2014 /CNW/ - Sprott Resource Corp. ("SRC") (TSX:SCP) and Long Run Exploration Ltd. ("Long Run") (TSX:LRE) today announced the completion of a secondary offering of 12,654,635 common shares of Long Run ("Common Shares") by SRC at a price of $5.35 per Common Share, for gross proceeds of $67,702,297 to SRC (the "Offering"). Long Run will not receive any proceeds from the Offering.
https://www.newswire.ca/en/story/1061023/sprott-resource-corp-announces-holdings-in-long-run-exploration-ltd
Sprott Resource Corp. Announces Holdings in Long Run Exploration Ltd.
TORONTO, Oct. 29, 2012 /CNW/ - Sprott Resource Corp. (TSX: SCP) - Sprott Resource Corp. ("
SRC") announced today that, through Sprott Resource Partnership ("
SRP"), it has acquired ownership of 20,141,777 common shares of Long Run Exploration Ltd. ("
Long Run"), which based on information contained in documents publically filed by Long Run, represents approximately 18.3% of the total issued and outstanding common shares of Long Run (the "
Long Run Shares").
The Long Run Shares were acquired pursuant to a previously announced plan of arrangement completed on October 23, 2012 (the "
Arrangement"). Prior to the Arrangement, SRP owned 16,769,477 common shares of Guide Exploration Ltd. ("
Guide") and 13,153,936 common shares of WestFire Energy Ltd. ("
WestFire"), which were exchanged for 20,141,777 common shares of Long Run. SRP also owned 15,512,858 non-listed, non-voting convertible common shares of WestFire, which continue to represent
[D1] -listed, non-voting convertible common shares of Long Run ("
Long Run Non-Voting Shares") on a one-for-one basis, being approximately 100% of the outstanding Long Run Non-Voting Shares and convertible into approximately 12.4% of the then outstanding Long Run Shares. Upon conversion of the Long Run Non-Voting Shares into Long Run Shares, SRP will own approximately 28.4% of the then issued and outstanding Long Run Shares.
SRP acquired the Long Run Shares and Long Run Non-Voting Shares for investment purposes. SRP may purchase or sell securities of Long Run in the future on the open market, in private transactions or otherwise, depending on market conditions and other factors material to the investment decisions of SRC and SRP.