Chinook Energy Inc. Common CNKEF

RE:YoY Increase in Reserves, NAV at C$0.84, only 18% booked

[Miner1967]

Miner1967 wrote:

RLI is from 10 to 17 years!

 

NAV before tax NPV-10 is C$0.52  (based on Proved reserves alone).

 

NAV before tax NPV-10 is C$0.84   (based on Proved and Probable reserves).

 

The tremendous YoY increase on all reserves categories took place with only 18% of CKE's Montney acreage booked:

 

"At December 31, 2017, in addition to the 13 (11.3 net) proved developed producing wells, McDaniel recognized a total of 33 undeveloped locations, 19 (16.1 net) proved undeveloped locations and 14 (11.3 net) probable undeveloped locations.  As at the date of the McDaniel Report, approximately 18% of Chinook's greater Birley/Umbach Montney acreage was booked."

 

 

 

Additionally, the tremendous YoY increase on all reserves categories took place although:

 

 

"The above pricing table was utilized by McDaniel in its evaluation of Chinook’s reserves as at December 31, 2017. When compared to the December 31, 2016 price forecast, commodity pricing for the year 2018 has decreased for Edmonton Light Crude Oil, AECO Natural Gas and British Columbia Average Plantgate Gas by 4%, 29% and 38%, respectively. The longer term price forecast decreased on average over the following 10 years for the same commodities by 6%, 13% and 15%, respectively."