CKE (C$13,000/boepd) vs SRX (C$53,000/boepd)So proforma today's Gold Creek deal, CKE has C$29 million CASH (C$18m existing cash and C$10.5m cash from the deal) and its
Enterprise Value at C$0.48 is just C$70 million. And thanks to the 3 new Montney wells, CKE reaffirms it will exit March 2017 with
5,300 boepd. So debt-free CKE currently trades for C$13,300 per boepd! And Zero Debt.
And 227 net identified drilling locations in the Upper Montney alone. This doesn't include the Middle and Lower Montney.
And this is Montney production from Birley/Umbach were offset operators such as
Storm (SRX) currently trades for about C$53,000 per boepd......And SRX has a significant amount of debt and leverage that can't be ignored. I quote:
.......stated Walter Vrataric, President and Chief Executive Officer of Chinook. "Upon closing of the proposed disposition, we will focus solely on our Montney acreage at Birley/Umbach where we hold 55,090 acres (44,733 net) of Montney rights with an upper Montney drilling inventory of over 270 (227 net) management identified locations along with additional potential to reduce inter-well spacing in the upper Montney (from four to five or six horizontal wells per section) and also develop middle and lower Montney layers throughout a 250 meter thick Montney interval", added Mr. Vrataric.
Chinook is continuing to investigate opportunities to maximize the value of its remaining Alberta Montney acreage at Knopcik/Pipestone where it holds approximately 21,280 acres (12,070 net) of Montney rights in this emerging area which has witnessed an increased level of industry drilling activity over the last several years.
Chinook's current production, (excluding volumes from the proposed Gold Creek disposition) is approximately 3,030 boe/d and the Company expects to exit the first quarter of 2017 at approximately 5,300 boe/d. Chinook will provide its full year 2017 capital spending and production guidance upon closing of the proposed asset disposition.
https://web.tmxmoney.com/article.php?newsid=4979216237119624&qm_symbol=CKE