Long Run Explor Ltd Ord WFREF

bang for the buck

[qwqw]

If LRE were able to buy back half its shares using an issuer bid and a dutch auction
at an average of $1.50/ sh,the total cost would be $150 mil.NAV/sh would double as a result.
If you wanted to double LRE's NAV by drilling,it would require over $2 bil worth of capex and
that's using low finding costs of $10 boe, the norm is closer to $15 so maybe $3 bil. 
For a company trading for peanuts like LRE, not having an isser bid is insanity at its worst.

[ILUVDIVIDENDS]

This post has been removed in accordance with Community Policy

[straightbull]

You are both right.....reduce the dividend first, then do the buy back at a lower price. I would estimate the buyback would be at less than a buck considering WTI is still heading lower.

[JohnJBond]

Now apply that logic to a private equity fund, or other possible acquirer.    One of the reasons I've not wanted to go short, or sell with the hope of buying back cheaper, is because of the potential for a tender offer.    When prices are this low, tender offers have to be on someone's mind.

[qwqw]

If one deducts land value, LRE's P/flowing is only $21,000 and reserves are $4 ????????? Has anyone ever found a large company (half oil) that had lower numbers?Please post. Does LRE deserve the distinction of being one of the cheapest O&G companies ever? Even when oil was $20 bbl, companies were trading higher than LRE. At the moment the next lowest numbers are from TBE $27