Iron Brdg Res Inc. OEXFF

RE:Velvet-IBR deal, key metrics, implications for CKE, CQE

[stockfy]

I think we know now the reason why IBR dropped under 50 cents a few weeks ago. Perhaps, Velvet was behind it and was pressing it. LNG Canada project is expected to be announced this summer, which will also help all the natural gas weighted Montney producers, including IBR.

stockfy wrote: This Montney deal has very positive implications for two other Montney producers who look for suitors, Chinook (CKE) and Cequence (CQE). The key metrics imply that CKE's and CQE's Enterprise Values are much higher than their current ones. 

Actually, CKE is a pure Montney play like IBR but CQE is a double play thanks to its Montney and its new oily Dunvegan play.  Both CKE and CQE have stated that they have all options open, including a sale, so we will see. 

The key metrics Velvet -IBR:

"The Offer values Iron Bridge at an enterprise value of approximately $120 million, which implies a multiple of 12.2x Iron Bridge’s 2018 consensus EBITDA."


About C$34,000/boepd based on IBR's 3,600 boepd current production.

About C$4.60/boe of 2P reserves.