Seven Generations Energy Ltd. class A common shares T.VII

Goldman Predicts 55 dollar WTI

[retiredengexec]

By Q3 2021 Due to covid vaccine and stunted US production. This nets an additional 490 million in cashflow. Combined with stronger natgas prices the SP is set for a big increase. The wildcard is how long this high price lasts.

[regardless]

retiredenergyexec... what sort of an increase can you expect based on 55$wti...3$ gas

[retiredengexec]

Sp of 10 to 12 is possible.

[regardless]

retiredenergyexec,,, what are you expecting to see on nov 9 q3 release here?

[retiredengexec]

A netback of 14.50 per boe and funds flow of 231 million on production of 175,000 boepd. They could beat this but I dont think so with the drilling pause earlier this year. So if they spend 200 million in this quarter they have 31 million of free cash flow. I base this on 38 dollar US Condy and 2.90 per mcf cdn gas and 12 ngls.

[regardless]

So then q4 will show a loss because they got back to drilling with 5-6 rigs?

[regardless]

It makes no sense that they can only show 30 million in free cash flow after expenses in q3 with 6 rigs racked 

[retiredengexec]

Well 14.50 times 175000 times 91 equals 231 million of actual cashflow. Assuming a budget of 650 million for the year and 400 in the last half.... I'll check spent to date as of q2 to validate the above assumption. Note that they only forecast free cash flow of 350 million in the original budget at 55 dollars wti and capex of 1.1 billion. Bottling it's all about price and although q3

[regardless]

Your 100% correct retired energy exec  prices are bad still and have been most of the quarter  this company can excel if... oul gets back to pre COVID levels and the company doesn't grow at all costs any further if they can operate a lean company at 55$ a barrel  this could be a great company 

[retiredengexec]

Regardless you are also 100 percent correct In a previous post I was a bit off on capex. They should spend only 175 million therefore free cash flow should be around 55 million. Thanks for challenging me!

[regardless]

wasnt trying to challenge you sir but.....your only alloting 25 million for drilling in q3? that number is rather low considering well costs are around 7.5million ifd gamble to think drilling costs would have been around 55 million in q3 as opossed to 25

[retiredengexec]

167 mill in q3 and q4 to top up 2020 capes to a total of 650 for the year.

[regardless]

retiredenergyexec... what do you make of the trading range we have been seeing of late... such a tight range can mean a big gap up or a big gap down unfortunately... do any of these snalysts have any shot at being close to that 3.95$ target for gas in the december contract? or will this stock only move based on a good earnings report on nov 9 based on 55million on free cash flow as we both