Chinook Energy Inc. Common CNKEF

RE:Chin up

[bouquets]

PeterM1 wrote:

Some interesting extrapolations can be made from the recent Cardinal purchase of Apache operations in Canada.

 

Cardinal purchase price was about 80% of the NPV (2P-10%) of the assets bought.

 

On this basis one could value Chinook at about .71 cents a share.

 

Another metric one could use is the Cardinal paid $64,000 a flowing boe.

 

Chinook’s average for this year is expected to be 4,200 boe.  Using the this number, CKE shares are worth $1.24 each. 

 

However end 2017 production is planned to be 6,300 boe. Apply this number and CKE should be worth about $1.86 a share.

 

But this is not the end of the story. Chinook has only 'booked' 15% of its rights in the Montney area.  There is a lot of extra hidden value that does not factor into these numbers.

 

For those who still care, I understand that the Cardinal et al shares will be delivered next week to entitled shareholders.

The Cardinal metrics are probably not a useful comparison in this case. Cardinal is buying Apache's light oil production, and Chinook produces mostly gas.  A boe of light oil sells for double what a boe of gas does.