Chinook Energy Inc. Common CNKEF

RE:RE:Montney: CKE vs LXE & Mark Papa from Riverstone Seneca

[InvestLargeC]

invest99 wrote:

invest99 wrote: See LXE's Update on Reserves and Production that was out today.

LXE's Production Capacity now including the 2 latest wells drilled in early 2016 is about 2,500 boepd (~75% natural gas).

LXE's Reserves is 17.1 MMBoe (82% natural gas).

LXE is debt-free and its EV is now C$210 million.

LXE trades at  C$84,000/boepd and C$12.3/MMBoe (82% natural gas).


CKE is debt free with more than C$30 million cash.

CKE's Production capacity now is about 7,000 boepd, according to the company's news.

CKE's 2P Reserves is 30.5 MMboe (76% natural gas).

CKE's EV now is about C$80 million.

CKE trades at C$11,500/boepd  and C$2.6/MMboe.


Meanwhile, former EOG Resources' (EOG) CEO Mark Papa and its Riverstone Seneca Fund paid about C$70,000/boepd in December 2015 to acquire another 12% stake in CKE's Montney neighbor at Gold Creek, CIOC (Canadian International Oil Corporation).


https://cioc.com/


https://cioc.com/news/2015

 

Did you learn how to separate the OPERATING Netback from the CASH netback? 

You were so confused about them and you were unable to figure out the difference between them.

Once you understand the basics about the energy producers like their key metrics $/boepd and $/MMboe, you will see that LXE's OPERATING Netback was equal to CKE's OPERATING Netback in Q4.

End of Education.

Thank you for the information. Very usefull. Numbers speak volumes here about CKE undervaluation.