Long Run Explor Ltd Ord WFREF

Undervalue..

[bosse]

As a long time  Guide shareholder the merger with Westfire is a greath move.

Long Run looks to me undervalued .

For example I have made a comparison with Crew

Company      BOE/d    Share Issued       Cashflow/sh  Netback/BOE  Acreages   Debt(M)  Share price oil/gas

Long Run     24,910    126,910,000          1,85(e)        $ 28,10         1,861,000       450        4,20         50%

Crew            29,286    120,829,000          1,52            $21,78             984,000       355         7,84         57%

I could add many others like Celtic,Legacy,White Cap, Bellatrix and Long Run shoudl be at least twice his actual value.

It's a matter of months to see Long Run at $ 8,00 or higher.

[cookster9]

This post has been removed in accordance with Community Policy

[testy1]

Bosse, "It's a matter of months to see Long Run at $ 8,00 or higher."   BMO's 12 month target price is $4.75 so why would it go to $8.00?  If it hits $6.00 I'm gone.    

[bosse]

Compare to many other companies the ratio of SP/cashflow looks to me a good indication that LNE SP is very low . LNE SP/cashflow is about 2.2 and Crew Energy (for example )is 5,1. Same thing for many other petroleum company where the SP/cashflow is much higher.  Netback/BOE of LNE is very good . However nobody can say for sure that LNE SP ''will''double in a short period of

[nonvoyan]

"As a long time Guide shareholder the merger with Westfire is a greath move." Sure was for Guide.   Got to obtain a larger cap company at a market discount, and keep the Guide management around.   What's not to like about the deal, unless you were a WFE shareholder.    So long as the SP keeps rising like it has so far, I think all of us WFE shareholders will quiet

[iaminvestor]

Actually Sprott is the only one who has benefits thus far after the merge of GO with WFE. WFE holders were expecting a much better deal as WFE was very oily. But Sprott determined the rules of the merge. However LRE, the new entity, is not expensive currently. TOU, POU, PEY and few other Canadian operators are expensive as the recent article of SeekingAlpha below points out https://seekingalpha

[deisman]

Looking at page 11 of their Sept/2012 general presentation it doesn't look like they did very well on either company. Company               Year            $ Invested               Unrealized $