RE:New Presentation, Princess IRR 91%, NAFTA cash US$25-US$60mstockfy wrote: New presentation is out including PPR's boomer wells at Princess. At Princess, payout for its low cost oil-weighted wells is just 1 year, see presentation, so these wells have the highest IRR in Canada at 91% at current strip. No word about these wells from the resident liars and bashers. You can't find other oily wells in Canada with payout in just 1 year at current strip. Even in the Permian basin, the payouts are over 1 year. This is why PPR will focus on this area this year. PPR owns 33,000 net acres at Princess, so it has many drilling locations in the area:
https://www.ppr.ca/wp-content/uploads/2019/03/March-2019-PPR-Presentation-Final.pdf
PPR also is the operator of its acreage in its core areas, so it can determine the pace of development while waiting for the cash from NAFTA that will cut its debt at least in half and boost the stock price.
PPR also owns 700,000 net acres proforma the Marquee deal, so both farm-outs and asset sales for non-core midstream and upstream assets are very likely this year to reduce its debt.
NAFTA's cash is another major catalyst that can be out any day now. It's expected that PPR will receive at least US$25 to US$60 million in damages, read below Mackie's analysis. This is from CAD$35 to CAD$80 million or 30+ cents per share:
"Potential Cash Windfall from Quebec Settlement Could Rerate the Stock:
With this in mind, we recommend companies that are highly undervalued with strong fundamentals, but with unique differentiating features or future events that can gain investor attention. We like Prairie Provident Resources Inc. (PPR:TSX) for its cash flow funded 2018 capital program that should grow production to ~6,000 boe/day. Also, in Q2/18 the company may receive a favorable ruling from an arbitration tribunal that could award substantial damages, which could be a major near-term catalyst for the stock, significantly adding to the company's balance sheet and initiating a re-rate in the marketplace.
PPR is seeking damages of US$188.9 million related to the termination of the rights to one of the company's licences in Quebec. The final hearing concluded in November 2017 and a ruling in the dispute and potential damages could be announced in H2/18.
Over a five-year period PPR committed a significant amount of time and capital to securing the exploration licences, acquiring and interpreting seismic and drilling wells. We feel damages of between US$25 million to US$60 million would certainly be in the realm of possibility. Damages at the low end of this range would allow the company accelerate growth through drilling or acquisitions, and could re-rate the stock."
https://juniorminingnews.com/?p=1002116