Chinook Energy Inc. Common CNKEF

RE:Montney Deals Update: 1,300 boepd & 8.6 MMBoe sold for C$80M

[Miner1967]

invest99 wrote: LXE sold part of its Montney assets in May 2015 for C$80 million in cash.

Those assets produced 1,300 boepd (87% gas) and had 8.6 million 2P Reserves (88% natural gas).

So CKE's current EV of C$80 million is equal to the value of that deal although CKE's Production capacity is 7,000 boepd and holds 30.5 MMBoe 2P Reserves (75% nat gas).



https://web.tmxmoney.com/article.php?newsid=75752596&qm_symbol=LXE



CALGARY, ALBERTA--(Marketwired - May 27, 2015) - Leucrotta Exploration Inc. ("Leucrotta" or the "Company") (TSX VENTURE:LXE) is pleased to announce that it has signed a purchase and sale agreement and subsequently closed the disposition of a portion of its assets located in the Greater Dawson area in Northeast British Columbia for a cash consideration of approximately C$80 million. The sold assets are currently producing approximately 1,300 boepd (87% gas) and had approximately 8.6 million boe of 2P reserves assigned to it in Leucrotta's independent reserves report prepared in accordance with National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities by GLJ Petroleum Consultants Ltd. dated effective December 31, 2014 (the "GLJ Report"). Based upon the GLJ Report, the sold assets represent approximately 33% of the total 2P reserves of the Company.

Usually stocks with high production mix in natural gas were more correlated to crude oil compared to natural gas:

https://marketrealist.com/2016/03/natural-gas-weighted-stocks-affected-crude-oil-recovery/

As you see the US listed stocks have already reacted with oil recovery, but the Canadian ones haven't done the same. I believe soon they will follow too.

CKE is cheap in any way you evaluate it, so CKE will not miss the rally. Significantly higher NG prices are not required to do so.