Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

Logan Energy Corp V.LGN

Alternate Symbol(s):  LOECF

Logan Energy Corp is a Canada-based company, which is engaged in the acquisition, production and exploration of oil and natural gas. The Company is focused in the Pouce Coupe and Simonette areas of north-west Alberta on the Montney resource trend, and in the Flatrock area of north-east British Columbia. The Company has approximately 193,000 net acres of working interest, 95% Montney Crown land across three properties (Simonette, Pouce Coupe and Flatrock). The Simonette property has approximately 51 operated Montney wells primarily drilled in the gas condensate window. The Pouce Coupe property has seven wells. The Pouce Coupe asset spans the gas condensate to light oil window. The Flatrock property is undeveloped Montney acreage prospective for both gas condensate and oil development. The Company also owns a 50% working interest in its 120 million standard cubic feet per day (mmcf/d) gas plant.


TSXV:LGN - Post by User

Post by retiredcfon Oct 04, 2024 8:28am
141 Views
Post# 36252887

TD Report

TD Report

RESUMING COVERAGE

UNVEILS DUVERNAY POSITION. ACCELERATES POUCE

THE TD COWEN INSIGHT

Logan revealed a significant land position in the Duvneray. This is in-line with its strategy of amassing a sizable position in underappreciated areas then proving up the resource. While its early days, this asset has the potential to bring significant volume growth. LGN also announced full-field development at Pouce and has greenlit an owned/operated gas plant in the area.

Event: TD Resuming Coverage Post Equity Financing

Impact: SLIGHTLY POSITIVE

Equity Financing and New Credit Facility: On September 12, LGN announced an equity financing and issued 68.5mm shares at $0.73/sh for total gross proceeds of $50mm. In addition, the company announced new total credit facilities of $125mm (up from $75mm prior).

Incremental Cash Directed Towards New Infrastructure & Duvernay: Funding will be used to accelerate development at Pouce Coupe, including building a new 40 mmcf/d gas plant (commissioning expected mid-2025) and for initial drilling on the newly disclosed Duvernay lands.

New Duvernay Position: LGN announced it has assembled 152 net sections (~97,000 acres) in the Duvernay comprised of 56 net sections with 50 locations in Simonette and 96 net sections with 90 locations in Ante Creek (Figure 1). Logan has already drilled its first Duvernay well at Ante Creek (completed in 2025). The company will also bring one Duvernay well on-stream in Simonette in 2025.

Our View:

  • Simonette Duvernay: There has been some legacy drilling activity (Figure 1). The use of longer laterals has the potential to increase economics versus most recent analogue being a shorter well completed in 2015 (13-01-064-26W5). The company can utilize existing infrastructure in the area.

  • Ante Creek Duvernay: There has been no legacy Duvernay activity in the area; however, Logan believes this area could provide similar results to Kaybob which is just to the southwest. Initial LGN well results will be key to value attribution on this acreage.

    Accelerated 2024 Program; Preliminary 2025 Budget: Logan increased its 2024 capex budget to $140mm (from $120mm) to provide for the new Pouce gas plant and the drilling two more Montney wells at Pouce. The 2025 guidance contemplates a $170mm capital budget and average volumes of 12.8 mBOE/d (14.5 mBOE/d in H2).

    Our View:

While spending is higher than we had previously modeled on similar volumes, much of this will be used for new infrastructure which will drive a meaningful increase to liquids contribution next year (37% of total vol) given higher NGL recoveries at Pouce.



<< Previous
Bullboard Posts
Next >>