CKE's Condensate-rich versus LXE's NGL and Valuation Gap See first the absurd valuation gap between these two debt-free Montney juniors:
Leucrotta (LXE) (3,200 boepd with 73% natural gas) trades over $3,000/Montney acre, over $100,000/boepd, over $15/boe of 2P reserves and over 15 times the projected annual cash flow in 2018. Chinook (CKE) (6,400 boepd in December 2017 with 75% natural gas) trades under $1,000/Montney acre, under $10,000/boepd, under $2/boe of 2P reserves and under 5 times the projected annual cash flow in 2018. "JDavis17" alias, the resident troll and pathological liar with the 116 ignores in just 4 months with his latest 5th Stockhouse account (although some say that he has created at least 16 aliases over the last 7 years on SH with 7,000 ignores) is never tired of posting lies, although some are so easy to be detected. He alleged yesterday that:
JDavis17 wrote: You really like to compare CKE to LXE, which is undoubtedly an expensive stock, but you refuse to acknowledge that LXE produces a lot of valuable light oil, and that their recent wells contain as much as 50% liquids.
See now the fact with only 27% oil/liquids as quoted from Leucrotta's (LXE) latest report:
Leucrotta’s Q317 production is estimated at approximately 3,000 boepd (27% oil and liquids). Pricing for the quarter averaged approximately $1.57 per mcf for gas (versus $1.45 for Aeco) and $50.65 per barrel for oil and liquids (89% of Edmonton Sweet). Leucrotta is currently producing about 3,200 boepd with increases expected through Q4 as new wells come on-stream.
See also the facts about LXE's recent wells with the new completion design as quoted from the latest news, all of them
have maximum 40% oil/liquids with a significant amount of it being cheap NGLs (butane, propane) and 0% high-priced Condensate (pentane):
" Leucrotta recently tied in and started producing the 8-4 Lower Montney Oil well. The 8-4 well had an IP30 of 747 boepd comprised of 317 bopd of light oil, 2.2 mmcf/d of gas, and 60 boepd of ngls. Note that this well was completed with 28 fracs versus the recently released A8-22 well noted below that had 41 fracs."
" The A8-22 well has now produced beyond 90 days and had an IP90 of 838 boepd comprised of 254 bopd of light oil, 3.0 mmcf/d of gas, and 79 boepd of ngls." " Leucrotta recently completed the A8-22 Lower Montney well utilizing a 58% increase in frac intensity. The new well was placed on production in late June and had an IP30 of 996 boepd comprised of 375 bopd of light oil, 3.4 mmcf/d of gas, and 60 boepd of ngls".
All these facts and results are here:
https://www.leucrotta.ca/