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WFREF acquired.
FINRA deleted symbol:
http://otce.finra.org/DLDeletions
Correct you are, Chefboy69. Been buying this and ZPTAF, Surge Energy for past couple months. Hope to have some significant dividend income by end of year.
T
going to take a contrarian position here on the Canadian side(TSX)
small position
but I will hold for at least 2 years
i have a feeling OIL will go back up and this will go back up with it...
and if they re-start the divi...then this is better than gold, its BLACK GOLD...lol
very interesting stock indeed I like it a lot could go anywhere
hare Structure
Market Value1 $102,062,700 a/o Feb 12, 2015
Shares Outstanding 110,100,000 a/o Dec 31, 2012
Float Not Available
Authorized Shares Not Available
Par Value No Par Value
WFREF (LRE.T) Why Long Run Exploration Ltd. Offers Considerable Upside if Oil Rebounds
By Matt Smith - February 12, 2015 | More on: LRE
2
inShare
Hardest hit in the energy patch because of the rout in oil are small-cap oil explorers and producers. Many have seen their share prices plunge by over 60% since the rout started six months ago. Small-cap light oil producer Long Run Exploration Ltd. (TSX:LRE) has been no exception. Over that period its share price has plunged 83% and looks set to fall further with some analysts predicting the worst is yet to come for crude.
As a result, the outlook for Long Run like many of its peers, has been downgraded by analysts with it going from a “buy” to a “hold” on expectations that crude prices will fall further.
However, there are signs Long Run may be one of the better positioned small-cap oil stocks to weather further sustained weakness in oil prices while offering considerable upside when they rebound.
So what?
As a result of signs that significantly weaker crude prices are here to stay Long Run has revised its 2015 guidance, further cutting capital expenditures and suspending its dividend. This sees it using an assumed price for West Texas Intermediate (WTI) of US$52.50 well below the US$60 plus prices used by other operators in the patch.
In comparison to 2014, Long Run’s 2015 capital expenditures have been slashed by half to $100 million and as a result production is expected to average 33,000 barrels daily, with 43% comprised of liquids. This level of production remains relatively unchanged from 2014, despite the massive cut to capital expenditure.
The suspension of the dividend saves Long Run an additional $40 million annually and after crunching the numbers using this revised guidance I expect Long Run to generate operating cash flow of $200 million in 2015. This means its capital program for 2015 will be fully funded from cash flow despite the significantly lower crude prices.
Such a prudent move allows Long Run to shore up its balance sheet and ensure that it doesn’t incur any unnecessary debt.
More promising, the rout in oil prices has forced Long Run to focus on creating capital efficiencies by cutting costs across its operations. When oil prices rebound this will see it well positioned to generate a healthy margin per barrel of crude produced.
It is also considering the sale of several non-core properties in order to generate additional funds to strengthen its balance sheet, although I believe this may be difficult to execute in the current operating environment. Markedly lower crude prices in combination with a flood of oil assets already on the market have significantly depressed prices, making now the wrong time to consider asset sales.
However, more importantly for investors, Long Run appears massively undervalued in comparison to the value of its core assets; its oil reserves totalling 85 million barrels. After crunching the numbers and assuming an oil price of US$52.50 per barrel, Long Run’s reserves have a value of $3.20 per share net of royalties and after tax. This represents a premium of 170% over Long Run’s last traded share price, highlighting just how much the market undervalues the company in comparison to its core assets.
Now what?
Long Run is certainly not without risk. As a small-cap oil explorer and producer, any significant and sustained weakness in crude prices will have a severe impact on its financial performance and hence its share price.
However, impressively the company has taken measures that allow it to remain viable in the current operating environment, including cutting expenses and ensuring its capital program can be funded internally. I believe Long Run offers considerable upside for investors willing to make a speculative bet on oil prices.
Don't have the risk tolerance to buy Long Run Exploration? Then take a closer look at this energy stock.
Does your portfolio have rock-solid blue chips at its core? If it does... GREAT! If not, you might want to reconsider your strategy.
Either way, we think you should take a look at what our analysts have identified as one TOP stock for 2015 and beyond -- a stock with a tollbooth-like business; a solid management team; and a reliable, consistent, and rising dividend -- and you can download the name, ticker symbol, and price guidance absolutely FREE.
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Fool contributor Matt Smith has no position in any stocks mentioned.
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http://www.fool.ca/2015/02/12/why-long-run-exploration-ltd-offers-considerable-upside-if-oil-rebounds/
looking good here today already blue
CAN LONG RUN EXPLORATION SURGE?
If Oil continues to Move Higher; Long Run Exploration Could Surge very quickly!....The Shares were beat down so much that it presented a Magnificent Yield with a Very Low PE!!!
FANTASTIC! Will Take a Double
Maybe hold Half Longer after Double!!!
yes maybe more than double.. i am expecting sometime this year 3 dollars plus
I LIKE IT NOW!
Lets See How it Does this year!....Collect The Dividend and wait for a Double!!!
yep holding some shares to get dividend each month
YES! .....50% Retracement is 100%+
Seems like the Fundamentals are still decent!....Technically could be attracting attention on any decent upward Movement....Are you in?
big possibility
WOW!....LONG RUN EXPLORATION
This Looks pretty Interesting!....LOW PE...WELL BELOW BOOK VALUE...NICE DIVIDEND....PRODUCTION HEDGE....Could it be a Double in 2015?
WFREF ~40% of oil & ~40% of natural gas production hedged for 2015
WFREF •2015 Production Guidance: 35,000– 36,000 Boe/d (44% oil + NGLs
WFREF •Dividend: $0.0175/share/month
WFREF~ Long Run Exploration, Ltd. is an intermediate oil company focused on light-oil development and exploration in western Canada. The Company’s projects are focused on evolving plays from conceptual to testing into scale development. The Company is focused in three areas in Alberta, such as Triassic oil, Duvernay, and Carbonate oil. The Company focuses on complimentary plays, including Charlie Lake and Doig. Its operations include Kaybob, Peace River Arch and Edam/Lloydminster. In May 2014, Long Run Exploration Ltd acquired certain strategic oil and liquids-rich natural gas assets focused on the Cardium in the Deep Basin and Pine Creek areas of Alberta. In August 2014, Long Run Exploration Ltd acquired Crocotta Energy Inc.
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CALGARY, ALBERTA--(Marketwired - Feb. 9, 2015) - Long Run Exploration Ltd. ("Long Run" or the "Company") (TSX:LRE) announces a revised 2015 capital budget, suspension of dividend and update on operations.
Current Economic Environment & Dividend Suspension
As a result of a volatile and uncertain commodity price environment, and current oil and natural gas prices significantly below our previously forecast 2015 assumptions, Long Run's Board of Directors and management have prudently decided to reduce our 2015 capital budget to $100 million and suspend our monthly dividend. The success of our drilling program has led us to conclude that it is in the long term interest of our shareholders to redirect funds to maintaining operational momentum in our key areas. These measures will help to ensure that we can continue to deliver on a sustainable long term business model.
Our business plan focuses on strengthening the balance sheet, actively managing our property portfolio and targeting a development program of Long Run's highest quality assets. We will continue to monitor market conditions and adjust our business model to balance financial flexibility, operational momentum and the Company's dividend policy.
Long Run will pay the previously announced January dividend on February 13, 2015 to shareholders of record at the close of business on January 30, 2015.
Fourth Quarter 2014 Update
During the fourth quarter of 2014, Long Run focused activity on our new Deep Basin core area. Capital expenditures totaled approximately $70 million in the fourth quarter and included $15 million of capital originally planned for the first quarter of 2015. First quarter 2015 net capital expenditures will be lower by $15 million accordingly.
Production averaged approximately 36,500 Boe/d (49% liquids), including longer than expected third party outages at Kakwa and Wapiti, as well as production downtime resulting from a third party gas pipeline replacement at Cherhill. We expect third party outages to be materially reduced with the completion of the facility expansion at Kakwa and the infrastructure modifications at Cherhill in the first quarter of 2015.
2015 Capital & Production Guidance
Long Run is revising our 2015 capital budget to $100 million, based on annual average commodity price assumptions of WTI US$52.50/Bbl, AECO $2.60/GJ and FX CDN/USD $0.80. The capital budget will be directed to oil and liquids rich natural gas development wells in the Deep Basin Cardium and Peace River Montney core areas. First half of 2015 development capital is anticipated to be $50 million with the drilling of 9 wells, including 5 in the Peace River Montney, 3 in the Pine Creek Cardium and 1 in the Kakwa Cardium. To help improve our capital efficiencies, we are currently working with our vendors to reduce our field costs.
Long Run's revised capital budget is expected to be fully funded by funds flow from operations. In the current economic environment, we will continually review our 2015 plan and adjust our development program as required.
Our revised drilling program is estimated to support average production of 32,000 - 33,000 Boe/d (43% liquids) for 2015.
Prior to the decrease in commodity prices, Long Run had several non-core property disposition packages being actively marketed as part of our ongoing asset rationalization process. We are continuing to evaluate our disposition opportunities to generate additional cash flow to improve our balance sheet.
Given the dramatic change in commodity prices, our 2015 guidance, released on December 15, 2014 based on an average oil price of WTI US$70/Bbl, should no longer be relied upon and is being withdrawn.
Operational Update
Long Run has successfully drilled and completed the first of a three well horizontal Cardium program at Pine Creek planned for the first quarter of 2015. The initial flow rate at the end of a 68 hour test, of 3 MMcf/d with 500 Bbl/d of light sweet oil, was approximately double our forecasted initial rate, significantly surpassing our expectations.
At Kakwa, Long Run has successfully drilled and completed one horizontal Cardium well to date in 2015. This well flowed at 2.8 MMcf/d of natural gas at the end of a 125 hour production test, with expected natural gas liquids of approximately 90 Bbl/d. This result exceeds our expectations for Cardium wells in this area. In total, Long Run has now drilled and completed five horizontal Cardium gas wells at Kakwa since establishing ownership in the area in mid-2014. Total tested natural gas rates of these wells is approximately 17 MMcf/d (3.5 MMcf/d average per well), with estimated natural gas liquids of 500 Bbl/d, exceeding Long Run's expectations by 40%. These positive results have provided Long Run with enough deliverability to fill our committed capacity at the expanded Musreau gas plant with fewer new wells than previously anticipated. As a result, we have deferred the drilling of two additional Kakwa wells, and the associated capital, from our first quarter capital program.
We continue to be excited about the potential benefits the Company may see in the next 18 months from our enhanced oil recovery ("EOR") projects in the Peace River Montney and the Redwater Viking. These benefits include improved recoveries, lower production declines and improved capital efficiencies. In January, the expanded Montney EOR project at Girouxville began injection. Based on our reservoir models, we expect EOR to significantly improve oil recoveries. We will continue to monitor the performance of these projects over the course of the year. Minimal capital input will be required in 2015 to maintain the momentum of these projects.
Visit the Company's website at www.longrunexploration.com.
ADVISORIES
Forward Looking Statements
This press release contains forward-looking information within the meaning of applicable securities laws relating to the Company's plans and other aspects of Long Run's anticipated future operations, management focus, objectives, strategies and priorities; planned reductions to first quarter 2015 net capital expenditures; expectation that third party outages will be reduced in the first quarter of 2015 with completion of facilities expansion; revised 2015 capital expenditure budget, timing of expenditures, nature of expenditures, method of funding of expenditures and plans to continue to review development program; expected average 2015 production and commodity mix; and anticipated benefits for EOR project and expectation that the minimal capital input will be required in 2015; and plans to pay previously-announced dividends. Forward-looking information typically uses words such as "anticipate", "believe", "project", "expect", "goal", "plan", "intend" or similar words suggesting future outcomes, statements that actions, events or conditions "may", "would", "could" or "will" be taken or occur in the future. The forward-looking information is based on certain key expectations and assumptions made by Long Run's management, including expectations and assumptions concerning commodity prices, exchange rates, interest rates, applicable royalty rates and tax laws; future production rates and estimates of operating costs and general and administrative costs; performance of existing and future wells; reserve volumes; anticipated timing and results of capital expenditures; the success obtained in drilling new wells; the sufficiency of budgeted capital expenditures in carrying out planned activities; the timing, location and extent of future drilling operations; the state of the economy and the exploration and production business; results of operations; performance; business prospects and opportunities; the availability and cost of financing, labor and services; the impact of increasing competition; ability to market oil and natural gas successfully; and Long Run's ability to access capital, and obtaining the necessary regulatory approvals.
Although the Company believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because Long Run can give no assurance that they will prove to be correct. Since forward-looking information addresses future events and conditions, by its very nature they involve inherent risks and uncertainties. The Company's actual results, performance or achievement could differ materially from those expressed in, or implied by, the forward-looking information and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking information will transpire or occur, or if any of them do so, what benefits that the Company will derive there from. Management has included the above summary of assumptions and risks related to forward-looking information provided in this press release in order to provide a more complete perspective on Long Run's future operations and such information may not be appropriate for other purposes.
Readers are cautioned that the foregoing lists of factors are not exhaustive. Additional information on these and other factors that could affect our operations or financial results are included in reports on file with applicable securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com).
These forward-looking statements are made as of the date of this press release and Long Run disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.
Production Tests and Initial Production Rates
Production test rates and initial production rates disclosed herein are not determinative of the rates at which the wells will continue to produce and decline thereafter and may not necessarily be indicative of long-term performance or ultimate recovery. Such rates may be based on limited data available at this time.
Barrels of Oil Equivalent
Barrels of oil equivalent may be misleading, particularly if used in isolation. A Boe conversion ratio of six thousand cubic feet of natural gas to one barrel of crude oil is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency conversion ratio of 6:1, utilizing a conversion on a 6:1 basis is misleading as an indication of value.
ABBREVIATIONS | |||
Oil and Natural Gas Liquids | Natural Gas | ||
Bbl | barrels | Mcf | thousand cubic feet |
Bbl/d | barrels per day | Mcf/d | thousand cubic feet per day |
NGLs | natural gas liquids | MMcf/d | Million cubic feet per day |
Boe | barrels of oil equivalent | ||
Boe/d | barrels of oil equivalent per day | ||
Liquids | light oil, heavy oil, and NGLs |
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