Long Run Explor Ltd Ord WFREF

recycle raio?

[rookieoilinvestor]

Hey Everyone, I noticed that Long Run disclosed a recycle ratio of over 2.0X? I sold my shares yesterday as the same thing happened with Legacy oil and look at it now! Can someone explain the advantages that Long Run has over Legacy? I was hoping that we would have broken the $5 by now? If the propsects were clear why isn't this higher? I held Westfire and hoped this would change but I am worried about the Spring thaw and this stock moving down below the $4. Can someone shed some more light for me?

[JohnJBond]

When it comes to the recycle ratio, the higher the number, the better.   The recycle ratio equals the profit per barrel divided by the total cost of discovering and extracting that barrel (more commonly known as the netback divided by the finding and development costs).    If my memory serves me correctly, when comparing Legacy with LRE, you will find two companies with about the

[bosse]

II agree with you LRE should be valued more than LEG. LRE cash flow for the lastquarter is .48 (excluding amalgamation cost).So we may expect $ 1.92 for 2013 I expect a cash flow of $ 1.51 for LEG in 2012.But this figure will be confirmed in a couple of weeks when they published their P&L statement.At this moment we will be able to estimate their cash flow for 2013. As you said their debt

[JohnJBond]

Its a fundamental error to value an oil and gas company based on the percentage of liquids they produce.   Its how much cash they generate per share that matters.   A barrel of oil sells for more than the a BOE of gas.   That does not mean that those that produce oil always make more than those who produce gas.   All other things being equal, a company that produces all gas

[OneStar]

The Q1 results willbe very interesting and IMO will surprise on the upside. In the operations update portion of the Q4 results the company makes some interesting statements. All the latest wells drilled are exceeding expectations. The Montney wells in Peace River are exceeding 200bbl/day (Initial production) up from around around 160bbl/day (+30%) and based on the chart in the March presentation