Chinook Energy Inc. Common CNKEF

2018

[nlr2]

My question is what will 2018 look like growth wise. They will exit with 2 million in cash, 6300 boe/d in production and I think the cashflow projection for 2018 is 11 million. Assuming that they have full use of their 8 million dollar line of credit, and wells continue to cost 3.7 million they could drill 5 wells. This would offset declines and provide some measure of growth, I'm not sure how much off the top of my head. I'm wondering if someone could project:

1) what production would look like going into 2019; and

2) How much space would be left in the compresser at that production. 

In 2019 if they owe some money, and the compresser is full, my concern is how they will fund a further expansion and more drilling in 2019. I guess they would use equity, and if gas prices go up so should cashflow, which would get rid of the issue, but if prices remain constant will they hit a wall?

I realize that looking that far into the future is difficult, but if anyone had some thoughts it would be appreciated.