One of our participants kindly posted a link to Sprott's report here:
Sprott Report
I would suggest being careful about reading old reports. This report goes back to last year before the full collapse of oil prices and while Sprott was still anticipating yield from dividends.
The environment for oil investing has changed considerably. No longer is the top end of oil prices expected to be sustained at $100-110. We are now looking at $75-80 for top end over the long run. This changes the outlook on all oil companies. Mitigating some of that is a lower cost environment but regardless, valuations are now changed for the long term with shale being capable of being produced at $65-$75/bbl. and that holds back oil prices.
The only way for investors to get out of the bind is to recognize that many companies such as LRE are undervalued at the moment and that losses are only going to be recouped by averaging down. Averaging down is usually a terrible strategy when a company is in terminal decline and investors get into a value trap. However, a company like LRE has been hit hard due to their high levels of debt and will see a price increase from here when they pay down a significant amount of that debt.