RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Royalty sale???Back in August, when WTI was at $45, CJ's 2P NAV was $4.31 (10% DCF). That was when everyone was forecasting a flat $50 WTI through 2020. At $50 WTI, CJ's revenue was $45/boe (CDN) and a corresponding cash netback of $12/boe (14% nat gas - BMO Ray Kwan). Now we have $60 WTI with LSB and Edmonton Sweet at $69 ($CDN Feb 15 oilprice.com). Do the math - CJ's cash netback has more than doubled from the consensus of 6 months ago and today's share price is flat. So, you must see the light and agree that Cj's NAV is substantially greater than the current share price.
The big commercial's believe the disinformation they have been fed by incompetent industry analysts (Bow tie guy!) and put high risk on a stable $60 WTI price. There are a few out there who see $80 WTI by year end because of the $1 trillion oil patch capex that disappeared over the past 3 years (Wood MacKenzie). And Rystad shows that only 11% of world production was replaced in 2017.
Cdn oils are all painted with the brush of ignorance. Cj is incorrectly priced from the.WCS price and pipelines are only a major, long term problem for the oil sands. Check out LSB and Edmonton Sweet. It's higher than Williston Sweet (N. Dakota Bakken crude) even with the new Dakota Access Pipeline on-line. - go figure.
Bottom line - buy back the shares @ $4.20. It's a screaming deal! And the market will eventually value Cdn small cap producers at 8x P/CF rather than 4x.