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maybe so but lre is sound enough to stand.
These guys bought assets at 4.5x cash flow with a R/P of 6.3xCrazy.Unless those assets have an enormous amount of PDNP's or PUDs, it was dumb. Note, the deal did not have a lot of PDNP's or PUDs.....
LRE is primarily an arbitrage vehicle for Lime Rock Resources. These guys run private equity and invest in producing properties..when the fund life ends, they simply flip the assets down to LRE. These guys just bought a set of assets with a R/P of 6.3 That is ridiculous. They need to be buying assets with an R/P of 18 or higher.I see nothing to set these guys apart from the rest of the crowd. They have no exciting assets etc.That being said, the price has really been hammered and at these prices...it is an interesting speculative play.Not really impressed with the co-CEO's.