Chinook Energy Inc. Common CNKEF

RE:New CKE in March 2017, NOT including extra cash from KNOPCIK

[George98]

George98 wrote:

And let's assume now that we are in March 2017.

CKE says that it will exit March 2017 with working capital surplus at about C$5 million after completing and connecting the three Montney wells in Birley/Umbach, which means it will have cash at about C$8 million. 

ADD C$10.5 million cash from last week's Gold Creek sale, and the total cash will be about C$19 million in March 2017. 

Of course I hope the Gold Creek deal will close in February and Chinook will receive the cash. I think neighboring CIOC owned by private equity Riverstone, is the buyer but I'm not sure about it.

 

So market cap at C$0.50/share is C$108 million, Enterprise value is C$89 million including the new cash from the Gold Creek deal. And we are in March 2017.

And this doesn't include additional cash that the company could receive from the potential sale of the Montney Knopcik asset in Alberta.

 

So the new and debt-free CKE at C$0.50 per share in March 2017 will trade for just C$16,800/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 aside SRX, all the other Montney producers also trade above C$40,000 per boepd!

 

Hey divot, 

it's Matthew Brister the only one who sold. He is leaving the board, CKE shrinks the board. The CEO bought at $0.48 a few days ago.