Iron Brdg Res Inc. OEXFF

IBR's deal: C$2,700/Montney acre, C$58K/boepd, C$5.20/boe

[stockfy]

PeterM1, with all due respect, you claimed in your last post that IBR was sold for C$1,500 per Montney acre but your calculations are wrong. I will show you why. Apply also IBR's key metrics to CKE. Based on the key metrics for IBR's deal, Chinook Energy (CKE) must be sold between C$120 million and C$180 million.

CKE has more than 55,000 net Montney acres, more than 4,000 boepd production, 33.9 MMboe of 2P reserves and only C$0.5 million net debt (see guidance), so it's dirt cheap at the current price of C$0.20 per share. And dirt cheap is an understatement because CKE's current Enterprise Value is just C$45 million.


So, at C$0.85 per share, IBR's Market Cap is C$130 million.

IBR's net debt is almost C$6 million, see below:

"In connection with the annual borrowing base re-determination of its revolving credit facility, the Company’s borrowing base limit was recently increased to C$10.0 million by its lender, enhancing IBR’s liquidity capabilities. As at June 30, 2018, Iron Bridge’s net debt was C$5.74 million. "


So IBR's Enterprise Value at C$0.85 per share  is C$136 million.

Natural gas weighted IBR holds almost 50,000 net acres of Montney land at Gold Creek, see presentation below:

https://ironbridgeres.com/wp-content/uploads/2018/05/CAPP-Q2-2018-Investor-Presentation-FINAL.pdf


So natural gas weighted IBR was sold for C$2,700 per Montney acre.


Also natural gas weighted IBR was sold for C$58,000/boepd  based on its 2,314 boepd Q2 2018 production, see below:

 

"In the second quarter, average daily production was 2,314 boe/d (weighted 30% light crude oil and NGLs), representing an 84% sequential increase over the prior quarter output of 1,256 boe/d."


Also natural gas weighted IBR was sold for C$5.20/boe of 2P reserves, based on its 26.3 MMBoe of 2P reserves, see presentation below:

https://ironbridgeres.com/wp-content/uploads/2018/05/CAPP-Q2-2018-Investor-Presentation-FINAL.pdf
 

[PeterM1]

The $1,300  land value was directly taken from IBR own news release of July 31, 2018 "Recent comparable Montney land transactions imply a value of approximately $3,500 per acre, almost three times the $1,300 per acre land value implied by Velvet’s offer for Iron Bridge’s 49,600 net acre position. The above numbers were calculated on the basis of the .75c offer. The increased final

[stockfy]

PeterM1, IBR's original press release of June 2018 was completely wrong. I sent it to IBR last week and they have not answered me yet because they don't have the courage to admit their mistake on the press release of June 2018. See this from IBR's latest press release with the sweetened offer, it says clearly that Velvet paid C$142 million: "Total cash consideration payable