Proforma Tournament, CKE is Leucrotta (LXE) in the making Proforma the Tournament deal, this is the new CKE at C$0.46:
122 net sections with pure Montney assets in Birley/Umbach and Gold Creek.
Zero debt.
More than C$25 million in cash thanks to the cash injection of C$7.5 million from the recent Gold Creek deal.
Market cap at about C$97 million.
Enterprise Value at about C$70 million.
NPV10 at C$74 million.
NAV at about C$100 million, which does NOT include the value of the undeveloped acreage.
Production at about 2,700 boepd (19% light oil and liquids).
2P Reserves at 18.29 MMboe.
So CKE currently trades at about C$25,900/boepd and C$3.8/boe. This valuation does NOT take into account the fact that CKE owns 70% of Tournament that produces about 5,000 boepd (34% oil and liquids) and owns 21.26 MMboe of 2P Reserves.
Plus, CKE's Montney peers currently trade at about C$40,000/boepd and C$6/boe and higher despite the fact that they have a considerable amount of debt...
And Tournament will be IPOed by 2017. AIMCo, one of the biggest Canadian Investment Funds, owns 10% of Tournament too. And with production of 5,000 boepd, Tournament's Enterprise Value isn't ZERO.