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Prairie Provident Resources Inc T.PPR

Alternate Symbol(s):  PRPRF

Prairie Provident Resources Inc. is a Canada-based company engaged in the exploration and development of oil and natural gas properties in Alberta, including a position in the emerging Basal Quartz trend in the Michichi area of Central Alberta. The Company has 167,869 net acres in its Michichi core area with approximately 40 Basal Quartz potential drilling opportunities targeting light/medium oil. Its core areas also include Princess. The Company's subsidiaries include Prairie Provident Resources Canada Ltd., Lone Pine Resources Inc., Lone Pine Resources (Holdings) Inc., Arsenal Energy USA Inc. and Arsenal Energy Holding Ltd.


TSX:PPR - Post by User

Post by Nachoboyson Oct 27, 2017 7:15am
117 Views
Post# 26866835

PPR can be summarized like this

PPR can be summarized like thisFor 48c/share or CAD 55m mcap, you get: -6500boepd exit production in 2017 -21mmboe 2P reserves -700k+ acres undeveloped with 0 assigned reserves -this incl. 240k net acres of multi-target geology in Quebec, not least the prime Utica shale -conventional production, with obviously significant drilling inventory, in areas in AB where they can consolidate further -oil & gas have been and will remain a cost game, low well investment expenditures is extermely important too, altogether giviing gving good IRRs. Here despite some fat in G&A that Im sure will be scaled away onwards, relatively and nominally PPR is very competetive still due to its conventional resource and Quebec option (Utica best shale in N America) -management with 1,5 shares, 3,1m warrants(not too much, not too little incentive, id say well balanced) -refinancing of current facility is taking place as per Q2 statement (note 8) its possible it could even be set higher given the major resources that PPR possess, yet available at a certain cash flow threshold and 2P reserve -1,5-1,75x p/cf valuation, while WTI is due for increase. 2018 and onwards basically remains unhedged, perfect upside case for investors -not least, Quebec for free, which equity analysts also confirms.. They got CAD 2/share target excl Quebec and future development of undeveloped land UNFORTUNATELY, this will likely be sold before we can see full realization of the potential.. Positively, likel Goldman Sachs, as well as myself and likely most of you friends, will not accept BS bids. Loads of structural value to be unlocked here, excluding the Quebec. As many journalists well emphasize, the oil & gas market is forgotten. The undervaluation of the entire sector will soon see inflow when asset managers realize.. to much value to ignore.. particurlarly in this case. Its about trading the trend, always been, now weed stocks trading 20x sales is popular, capping any upside until year 5. The essence of equity investing and returning cash flows to shareholders have been forgotten in recent years, due to 0-cost of credit. This will change. Back to basics. Looking forward to the Q3 results. QOCA conference starting on Sunday evening. Have a good weekend, I certainly will have.
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