1)CALGARY, ALBERTA--(Marketwire - Nov 13, 2012) - Lone Pine Resources Inc. ("Lone Pine" or the "Company") (LPR.TO) (LPR) announces that its wholly owned subsidiary, Lone Pine Resources
Canada Ltd., has entered into a definitive agreement with a large Canadian energy producer to dispose of all of its interests in the Wild River area of the Deep Basin of Alberta for total gross cash proceeds of $82.0 million, subject to normal course closing adjustments.
Details of the assets to be divested are as follows:
Average net sales volumes of 17.4 MMcfe/d (93% natural gas) in the third quarter of 2012
Total net estimated proved reserves of 78 Bcfe at December 31, 2011, determined in accordance with U.S. Securities and Exchange Commission guidelines, as evaluated by the Company''s independent reserves engineer, DeGolyer and MacNaughton ("D&M")
Total estimated proved reserves of 13.1 MMboe and proved plus probable reserves of 15.2 MMboe at December 31, 2011, determined in accordance with Canadian National Instrument 51-101 - Standards of Disclosure for Oil & Gas Activities, as evaluated by D&M
QUESTION Is the 13.1 MMboe part of the 78Bcfe??????????????????
2)Average daily net sales volumes for the third quarter of 2012 were 82.4 million cubic feet equivalent per day (“MMcfe/d”) with crude oil and NGLs net sales volumes representing 28% of total volumes; minus Average net sales volumes of 17.4 MMcfe/d (93% natural gas) in the third quarter of 2012
equals 65 MMcfe/d.................................A VERY SIGNIFICANT DECREASE!!!!!
oh course it is you knucklehead. 78/6 = 13MMBoe. That just means the rest of our production is worth 300 million. We still have around 55 MMBoe in reserves. If you conservatively value the rest of our acreage including evi at 500 million our nav is easily north of $5.00/share.
Sentiment: Strong Buy
You don't give up easily do you? As your post is at least an attempt at a halfway credible bash....I will the time to respond (not for you but for board members). Two things to consider. The Wild River holdings were primarily NGAS holdings.......LPR has significantly pulled back on NGAS production over the last year....taking 17 MMcfe from total current production doesn't work as a lot of that 17 MMcfe (at least the dry NGAS) was already idle.
Second....mgmt informed us during the last cc to expect total MMcfe production for the next quarter to be 85 MMcfe which would validate what I just told you (LPR has been citing quarterly production figures at between 80 and 85 MMfce....they came in at mid-range 3rd qtr...expect to be near the top of that range 4th qtr). Sorry to pop your bubble.
Now make my day by asking me about overall year to year production being down or even better ......why EVI production showed a decline from 2nd to 3rd quarter......naah....on second thought.......do your own homework to sort those out....tired of doing basic cc for you........
One small problem with your analysis.....if you had bothered to listen to the last cc they told us 4th QTR MMcfe would come in at the high side of their 80 to 85 quarterly earnings in 2012.....85 MMcfe for 4th Qtr. Most of the production at Wild River was NGAS which LPR has significantly reduced over the last year (in other worlds already counted in reductions). Why would you want to sell your NGAS at $1.50 Alberta par when you can get $15 in 2015 when the Kitma terminal opens???
They can live off of EVI oil if NGAS crashes again......if NGAS stays high....open a few more wells at their existing NGAS lands.