GREY:CNKEF - Post by User
Comment by
bigreturn11on Dec 23, 2015 11:00am
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Post# 24408007
RE:RE:CKE valued at C$1.70/share based on another Montney Sale
RE:RE:CKE valued at C$1.70/share based on another Montney SaleLook through the last couple press releases to review production of the newly drilled wells. The wells that Chinook tapped into should bring profit at any rate. Check out the metrics and pleae challenge my calculations if I'm incorrect..
3 wells averaging 5.5 mmcf/d = 16.5 mmcf/d. Lets say the 3 wells could average 10 mmcf/d for 320 days in year one of production. Each 1,000 cf/d would be worth $2/day even at low prices. Each mmcf/d is worth $2,000/day. Each 10 mmcfd/day is worth $20,000/day.
$20,000 x 325 days per year with servicing days = $6,500,000 per year in gas sales.
Assuming these wells average 40 bbl/d of condensate production per well which is a conservative estimate x 3 wells = 120 bbl x conservative $50 per barrell = +/- $6,000 per day x 320 days = $1,900,000.
Total revenue from the three new wells = +/- $8,500,000
Even at 15 year low commodity prices. Netbacks will be significant when gathering these levels of production.
Gusher wells
Quality land
$35,000,000 cash in the bank
$0 debt
$6,000 per BOE/d
How is this trading at <$1?
Welcome to the most undervalueds and safest junior in the sector based on the metrics.. I just discovered Chinnok and I can't believe the value here.
Am i missing something here?