Chinook Energy Inc. Common CNKEF

RE:CRAFT's core formation: DUNVEGAN has 40% IRR at C$39/bbl

[nlr2]

Great, Thanks George! I didn't realize that Craft had a website up. So once the shares are spun out to the CKE shareholders, it will continue to operate as a privateco for a time? Or will it go they go public?

The Dunvegan seems like a solid play for Craft to focus on. I like that they have focused on a key core area, cleaned up the balance sheet and unloaded a significant portion of their abandonment liabilities. I am however concerned that they may not have enough cashflow to undertake a significant drilling program without loading up with debt. I'm also not the biggest fan of Spagrud, I was in on Hyperion for a time and they had a difficult time getting much going. In his defense it was a poor time in general, and the company was undercapitalized. The Board of Directors seems strong, so that should help him out this time.

I would have bought Chinook just based on their Birley assets, so to get Craft thrown in is a great lottery ticket. Hope that we get some positive news from the company soon with regards to the sale/ purchase process!