GREY:CNKEF - Post by User
Comment by
Miner1967on Jul 05, 2016 9:58am
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Post# 25022720
RE:Black Swan Energy's Presentation, Warburg Pincus, CIOC & CKE
RE:Black Swan Energy's Presentation, Warburg Pincus, CIOC & CKEMiner1967 wrote: Proforma the Tournament deal, CKE is a pure Montney producer (122 net sections) with 2,700 boepd and 18.3 MMboe 2P reserves. At C$0.50 per share, CKE's current Enterprise Value is just C$80 million, because it holds about C$27 million cash thanks to the Gold Creek deal.
And plus, if you buy CKE at C$0.50, you also get 70% of Tournament that will be IPOed in 2017. To guesstimate Tournament's Enterprise Value once it goes public with WTI at US$60 in 2017, keep in mind that Tournament produces about 5,100 boepd (34% oil/liquids) and has 21.26 MMboe 2P reserves, see CKE's news.
So Tournament's Enterprise Value isn't less than C$200 million, so CKE's 70% stake in Tournament alone isn't valued less than C$140 million.
To sum it up, at C$0.50 per CKE share you pay now C$80 million, and you get Producing Montney assets with 18.3 MMboe 2P reserves + C$140 million for the stake in Tournament.
And proforma the Tournament deal, CKE is an exceptionally well positioned Montney producer. Its Montney assets are in Birley/Umbach and Gold Creek.
For CKE's Birley/Umbach Montney acreage, see the excellent Montney map from Black Swan Energy's Presentation below. See slides 4 and 18. Black Swan drills next to CKE in Birley area. Black Swan's assets are only in the liquids rich window and Black Swan expects to grow a lot thanks to these liquids rich assets. And see also CKE's assets which are both at the oil and the liquids rich windows: https://www.blackswanenergy.com/documents/2016-04-presentation.pdf For CKE's Gold Creek Montney acreage, see privately-held CIOC that has excellent drilling results in Gold Creek. This is why CIOC was acquired by US-fund Riverstone Seneca in December 2015, see below:
https://www.cioc.com/
And this:
https://www.cioc.com/news/2015 Plus, there are some very deep pockets behind Black Swan Energy. Some very deep pockets are also behind the other privately-held Montney companies next to CKE, like New Zealand-based Todd Corporation, UGR (Unconventional Gas Resources), Saguaro Resources and Canbriam Energy. They are backed by leading equity like Warburg Pincus etc.....So it will be a very interesting M&A period in the next months...
This is CKE's Presentation, see the map at the slides 6 and 11 with Birley and Gold Creek:
"CALGARY, ALBERTA--(Marketwired - June 28, 2016) - Chinook Energy Inc. (TSX:CKE) ("Chinook") is pleased to announce that, further to its news release dated May 25, 2016, it has completed the disposition of certain assets located in the Gold Creek area of Alberta for aggregate consideration of approximately $7.5 million, subject to customary closing adjustments, with an effective date of May 1, 2016."