CKE's versus LXE's Montney results in BC & Black Swan Leucrotta (LXE) has skyrocketed lately. But the savvy investors separate the speculation from the facts. The savvy investors separate the thin air from the substance and can see LXE's relentless promotion of the 1,290 boepd well that has been mentioned in LXE's press releases almost 10 times thus far. They don't ignore the valuation and the key metrics either.
Including its C$50 million cash and working capital, LXE's Enterprise Value is now about C$270 million.
LXE's production capacity is 3,300 boepd (~75% natural gas).
LXE's proved and probable reserves are 17.1 MMboe (80% natural gas).
So at C$1.90 per share, LXE trades now for about C$82,000/boepd and C$16/boe.
LXE's Montney acreage is in the oil window in British Columbia.
Chinook's (CKE) Montney acreage in British Columbia (Birley/Umbach) is in the overpressured liquids-rich window, see Black Swan Energy's presentation below (slide 6) for details about LXE and CKE.
Their Montney assets in British Columbia are close (see slide 6 from Black Swan's presentation below):
And see now LXE's drilling results from the oil window, according to the press releases:
In Doe:
A4-19: IP30 at 500 boepd (90% gas)
B4-19: IP30 at 890 boepd and production of 780 boepd at the end of the 30-day period
13-19: Tested at 1,290 boepd
C4-19: IP30 at 900 boepd
In Mica
13-07: IP30 at 447 boepd, 60% oil
8-18: Liquids-rich gas (Test rate of 375 boepd)
8-22: IP-8 at 713 boepd, 50% oil
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Also, check now CKE's drilling results from its 6 horizontal wells in the overpressured liquids-rich window in BC in Birley/Umbach next to Storm (SRX) and Progress that was acquired by Petronas (see slide 7 from CKE's presentation):
Test rates for new wells were 4.8 – 7.7 mmcf/d with free condensate rates of 24 – 45 bbl/mmcf. This means that CKE's liquids-rich wells were tested between 800 boepd and 1,300 boepd.
CKE has 280 total Gross (236 Net) Upper Montney Locations (assuming 4 wells/DSU) with equivalent Middle and Lower Montney potential over a 240m thick Montney interval.
Plus, see CKE's drilling results from its Montney wells in its second core area in Gold Creek right next to privately-held CIOC (see slide 11 from CKE's presentation):
CKE's 1st well: 1,500 boepd
CKE's 2nd well: 900 boepd
See CKE's Presentation:
Based on its Montney Production (~2,700 boepd) and Reserves (18.3 MMboe) proforma the Tournament deal, CKE at 52 cents trades for C$29,600/boepd and C$4.3/boe.
Don't forget that by owning CKE, you also own 70% of Tournament.