Value of Tower & Attachie Assets - Leucrotta & Kicking HorseLeucrotta Exploration sold 10.25 sections of non strategic Montney assets on April 1, 2021. I did realize the potential significance of this sale until i looked at it more closely today. They sold the 12.5 sections for $30 million or $2.9 million per section.
Whitecap also recently purchased private Kicking Horse in late March for $300 million (cash,debt & shares). This purchase was for 60 net sections of Montney rightsl . The current production is 8000 BOED. I believe like Crew the producion has a high liquids content which is comparable to Crews production. This works out to $5 million per section.
In my post yesterday I stated that Crew would receive likely no less than $1 million per section for the Tower and Attachie assets. That would amount to $107 million against Crews debt based on 54 sections at Attachie and 53 sections at Tower.
i thought that we would likely be able to get something closer to $2 million per section. After reviewing the above sales i feel more confident Crew can receive closerr to $2million and perhaps even more per section. At $2 million per section Crews debt is down to $143 million dollars and possiblly less. The investment community would IMO look very favourable on these transactions. Crew would very little production and the reality is they could not invest money into driiling these properties for years with their ample land opportunities at Septimus and Groundbirch. Yes I feel the future does look very good (hope you agree Beakr).