Aeris Environmental Ltd T.AEI

RE:New Presentation Out, trading at C$5/boe of 2P reserves

[George98]

Twood3, you do miss the whole AEI story and the sequence of events. I don't know whether your second alias is "ufoolme", the resident basher of this board.

First, AEI was debt free when the management announced the merger with Lone Pine. And debt free firms do NOT file for bankruptcy.

Proforma the merger, AEI's insiders and GOLDMAN SACHS own a significant amount of shares of the new entity.

Yes you read that correctly. This is Goldman Sachs because Lone Pine was owned by Goldman Sachs. If you do a serious dd you will find it.

George98 wrote: New presentation of the combined company is out. It was posted in late July 2016. AEI's  Princess wells cost just C$700,000 and have amazing economics and this is why they will be one of the core growth drivers for the new combined company. Their ROR is 70% and  the payout is just 1.3 years based on May 2016 strip pricing.

At the current price of C$1.30 per share, AEI's Enterprise Value is C$21 million because AEI holds C$4 million cash. See sedar.

This means that based on the merger ratio 77-23, the combined entity's Enterprise Value is about C$92 million.

And the combined entity has 18.3 MMboe oil weighted 2P reserves, so these oily reserves are currently  valued for just C$5 per boe!

This is one of the lowest key metric now in the oil patch among the firms without any debt problem.

And the new entity has very low DCF ratio, see presentation. Q4 Cash Flow  is about C$6 million so annualized is C$24 million while bank debt is just C$5 million.


See slides 8 and 14 of the new July 2016 presentation below to see the Princess wells:

https://www.lonepineresources.com/presentations/


I had Yoho (YO) and ZAR and both jumped 100% when investors realised their deals and how undervalued they were. See my posts at YO and ZAR if u doubt when I WS proving how cheap they were.
Same 100% rise will happen with AEI quite suddenly too.