GREY:TVETF - Post by User
Post by
stockfyon Apr 07, 2018 3:45am
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Post# 27846888
Insiders 23%, $5m CF in 2018, non-core assets, farm-out
Insiders 23%, $5m CF in 2018, non-core assets, farm-out Insiders own 23%, so their interests are aligned with ours'.
Adjusted funds flow was $4.2 million in 2017, see presentation, so TVL will easily make more than $5 million cash flow this year thanks to much higher prices for its natural gas and oil this year than in 2017.
AECO was under $1 last year and it has been above $2 this year. Huge difference.
WTI was under US$55 last year and it has been above US$55 this year. Huge difference.
With more than $5 million cash flow this year, TVL can drill cheap Mannville wells. This is what they were doing in the past 3 years.
There is no need for bank debt or significant dilution because TVL can sell non-core assets or make a farm-out if they want to drill a second Duvernay well. They have 90,000 net acres for Duvernay and another 90,000 net acres undeveloped land in Greater Coyote area, see presentation.
And if the second Duvernay is as successful as their neighbors, TVL will take off!
TVL has 7,000 net acres NON-CORE assets that can be sold without any impact on the production:
https://traverseenergy.com/wp-content/uploads/2018/04/corp-presentation-2018-April.pdf