NEW Presentation Jan 2017, CKE vs SRX in Birley, AnalystsAfter the sale of the Gold Creek Montney asset for C$10.5 million, CKE's last Montney acreage in Alberta is the Montney asset in Knopcik that hopefully will be sold soon to add more cash to this debt-free balance sheet.
CKE currently has working capital surplus at C$13.5 million, cash at about C$18 million, AND will receive in February C$10.5 million cash from the Gold Creek sale totaling cash at about C$29 million.
Market cap at C$0.50/share is C$108 million, enterprise value is C$80 million including the new cash from the Gold Creek deal. So the new and debt-free CKE
at C$0.50 per share trades for just C$15,000/boepd based on the March 2017 production of 5,300 boepd, while Storm (SRX) that drills next to Chinook in Birley/Umbach trades
above C$50,000/boepd. And SRX has leverage that is above 2 times!
And the new CKE in Birley/Umbach Montney asset has neighbors like Black Swan, UGR, Canbriam and Saguaro that are private equity backed firms which, by acquiring neighboring CKE, could go public quickly....mark these words.
See the new presentation,
see slide 9 that shows that the existing 6 Montney wells in Birley/Umbach that are superior to the other Montney peers,
see slide 10 where it says "Significant growth potential beyond 50 mmcf/d,
as 27 Hz wells is only about 10% of Chinook's existing Upper Montney drilling inventory of 227 net drilling positions at Birley that doesn’t inlcude future Middle and Lower Montey potential"
see the map at slide 6,
slide 11 with the 51% IRRs at current strip pricing:
CKE: New Presentation January 2017 proforma the Gold Creek asset sale And talking about analysts, National Bank gives a new Price Target of $0.75, which is still very low. But some other analysts rate Chinook as a Speculative Buy,
like Chinook is an explorer without production drilling exploratory wildcat wells in the middle of nowhere, somewhere in the Amazon rainforests or somewhere offshore in the Gulf of Mexico! This fact alone shows how incompetent they are and why they don't know anything about the Montney story here.
There is nothing about speculation here given that we talk about Montney, Chinook has PRODUCING Montney assets in Birley/Umbach next to PRODUCING Montney wells from other offset operators, and has 230 net identified drilling locations in the Upper Montney ALONE.
it's so pity these clueless analysts still have a job while there are other competent guys without work today.