After talking with Lightstream at EnerCom and again on the phone this week, I believe their balance is going to be in good shape by year-end. This article explains why. While we wait for the market to figure this one out, we collect nice monthly dividends. - Dan
http://seekingalpha.com/article/2278733 ... a-good-way
Lightstream Resources (LSTMF)
Lightstream Resources (LSTMF)
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Lightstream Resources (LSTMF)
Noted this item today RE: LSTMF
2014-08-26 19:33 ET - Market Summary
by Stockwatch Business Reporter
"John Wright's Lightstream Resources Ltd. (LTS) added 19 cents to $6.30 on 1.12 million shares. The market may be reacting to rumours that the company might soon announce another asset sale. To reduce its debt, currently around $1.8-billion, Lightstream has been trying to sell $600-million of assets by the end of 2015, and has sold $351-million so far. Yesterday on BNN, Eric Nuttall of Sprott Asset Management said he had seen a sales note that suggested that TORC Oil & Gas Ltd. (TOG: $14.81) was thinking about buying Lightstream's conventional assets in southeast Saskatchewan. Mr. Nuttall speculated that such a purchase might spur TORC to increase its dividend by one-third. The current payout is 4.5 cents a month, for a yield of 3.6 per cent. (Lightstream's, by contrast, is four cents a month, for a yield of 7.6 per cent.) Neither TORC nor Lightstream responded to requests for comments by deadline, but Lightstream's chief financial officer, Peter Scott, did say at last week's EnerCom Oil & Gas Conference in Denver, Colo., that the company was looking at offers for its conventional business unit. (As a side note, it is rarely a good sign when a conference host introduces a company with, "What a fun story this has been!" Lightstream's fun story involves falling from nearly $36 shortly after it listed in late 2009.) The conventional unit produced around 4,700 barrels of oil equivalent a day during the second quarter. Mr. Scott did not specify how much Lightstream hoped to receive for its assets, but a clue was provided in July, when it sold just over 1,000 barrels a day of the above production to Spartan Energy Inc. (SPE: $4.12) for $98-million.
Mr. Scott also discussed Lightstream's other assets. In the Saskatchewan Bakken, which produced around 15,000 barrels a day in the second quarter, the company has been expanding its gas-flood EOR (enhanced oil recovery) projects. It had four wells on gas injection at the end of 2013 and will increase that to five by the end of this year. The program is still in its early stages, said Mr. Scott, but work so far suggests that recovery factors could improve to over 25 per cent from 15 per cent. Lightstream is also starting EOR in the Cardium (19,200 barrels a day in the second quarter), and initiated water injection in July. Finally, Mr. Scott discussed Swan Hills (3,100 barrels a day in June). Bad news from this play sent Lightstream's stock down 55 cents to $6.30 on Aug. 7, after the company said its seven most recent wells were much worse than modelled and it would have to delay drilling four new wells in order to conduct a technical assessment. The company had been touting Swan Hills as its "next growth wedge" for over a year and had previously indicated that the results were "pretty encouraging" (from a conference call in May), so shareholders took the news badly. Mr. Scott said the assessment should be done in September, and depending on the results, drilling could resume late in the fourth quarter."
2014-08-26 19:33 ET - Market Summary
by Stockwatch Business Reporter
"John Wright's Lightstream Resources Ltd. (LTS) added 19 cents to $6.30 on 1.12 million shares. The market may be reacting to rumours that the company might soon announce another asset sale. To reduce its debt, currently around $1.8-billion, Lightstream has been trying to sell $600-million of assets by the end of 2015, and has sold $351-million so far. Yesterday on BNN, Eric Nuttall of Sprott Asset Management said he had seen a sales note that suggested that TORC Oil & Gas Ltd. (TOG: $14.81) was thinking about buying Lightstream's conventional assets in southeast Saskatchewan. Mr. Nuttall speculated that such a purchase might spur TORC to increase its dividend by one-third. The current payout is 4.5 cents a month, for a yield of 3.6 per cent. (Lightstream's, by contrast, is four cents a month, for a yield of 7.6 per cent.) Neither TORC nor Lightstream responded to requests for comments by deadline, but Lightstream's chief financial officer, Peter Scott, did say at last week's EnerCom Oil & Gas Conference in Denver, Colo., that the company was looking at offers for its conventional business unit. (As a side note, it is rarely a good sign when a conference host introduces a company with, "What a fun story this has been!" Lightstream's fun story involves falling from nearly $36 shortly after it listed in late 2009.) The conventional unit produced around 4,700 barrels of oil equivalent a day during the second quarter. Mr. Scott did not specify how much Lightstream hoped to receive for its assets, but a clue was provided in July, when it sold just over 1,000 barrels a day of the above production to Spartan Energy Inc. (SPE: $4.12) for $98-million.
Mr. Scott also discussed Lightstream's other assets. In the Saskatchewan Bakken, which produced around 15,000 barrels a day in the second quarter, the company has been expanding its gas-flood EOR (enhanced oil recovery) projects. It had four wells on gas injection at the end of 2013 and will increase that to five by the end of this year. The program is still in its early stages, said Mr. Scott, but work so far suggests that recovery factors could improve to over 25 per cent from 15 per cent. Lightstream is also starting EOR in the Cardium (19,200 barrels a day in the second quarter), and initiated water injection in July. Finally, Mr. Scott discussed Swan Hills (3,100 barrels a day in June). Bad news from this play sent Lightstream's stock down 55 cents to $6.30 on Aug. 7, after the company said its seven most recent wells were much worse than modelled and it would have to delay drilling four new wells in order to conduct a technical assessment. The company had been touting Swan Hills as its "next growth wedge" for over a year and had previously indicated that the results were "pretty encouraging" (from a conference call in May), so shareholders took the news badly. Mr. Scott said the assessment should be done in September, and depending on the results, drilling could resume late in the fourth quarter."
Re: Lightstream Resources (LSTMF)
And so be it:
September 2, 2014
Lightstream Announces $378 Million Asset Sale to Complete Our 2014-2015 Disposition Program and Updated 2014 Guidance
CALGARY, ALBERTA--(Marketwired - Sept. 2, 2014) - Lightstream Resources Ltd. (the "Company" or "Lightstream") (TSX:LTS) is pleased to announce that we have entered into an agreement with Crescent Point Energy Ltd. to sell the remaining assets in our southeast Saskatchewan Conventional business unit for gross proceeds of $378.4 million, including $375 million in cash proceeds plus certain Bakken lands within our Creelman enhanced oil recovery (EOR) project area valued at $3.4 million (the Transaction). Upon the successful closing of the Transaction, our liquidity will increase to over $600 million and we will reduce our secured term credit facility by $150 million to $1.15 billion. We are also providing updated guidance to reflect the effect of this divestiture.
THE TRANSACTION
The Transaction consists of approximately 3,300 boepd of production (96% light oil) and 13.2 million boe of proved plus probable reserves. The assets being sold represent approximately 8.5% of our July 2014 estimated production and approximately 7% of proved and probable reserves (based on our December 31, 2013 independent engineering evaluation). The purchase price received for the assets consists of total cash consideration of $375 million, before customary adjustments, and 3 key parcels of Bakken rights that enable us to expand our Creelman enhanced oil recovery project, valued at $3.4 million.
The Creelman Bakken properties received as part of the Transaction directly offset our successful natural gas injection scheme in the Bakken. Consolidation of these assets gives us 100% working interest ownership in a proposed 11.5 section Unit. Within the proposed Unit, we currently have three active injection wells with a fourth well expected to be on injection by year-end. The consolidation will allow for accelerated expansion of our EOR injection schemes.
Asset Sale Details:
-- Approximately 3,300 boepd of southeast Saskatchewan light oil production
(July 2014 field estimate)
-- 13.2 million boe (96% light oil) of gross proved plus probable reserves
(as evaluated by Sproule Associates Limited according to NI 51-101
adjusted for production up to June 30, 2014)
-- 76,882 net acres of land, which includes 55,471 net undeveloped acres
-- The asset disposition includes 450 net wells, including $38.5 million of
abandonment and reclamation liabilities
Key Metrics of the Transaction:
-- $114,700 per flowing boe (July 2014 field estimate)
-- $33.74 per boe of gross proved plus probable reserves (including future
development capital of $67 million)
-- 5.6 times annualized current cash flow
The Transaction will have an effective date of July 1, 2014 and, subject to satisfaction of all conditions and receipt of required regulatory approvals, is expected to close by the end of September 2014. TD Securities Inc. acted as our financial advisor on the Transaction.
September 2, 2014
Lightstream Announces $378 Million Asset Sale to Complete Our 2014-2015 Disposition Program and Updated 2014 Guidance
CALGARY, ALBERTA--(Marketwired - Sept. 2, 2014) - Lightstream Resources Ltd. (the "Company" or "Lightstream") (TSX:LTS) is pleased to announce that we have entered into an agreement with Crescent Point Energy Ltd. to sell the remaining assets in our southeast Saskatchewan Conventional business unit for gross proceeds of $378.4 million, including $375 million in cash proceeds plus certain Bakken lands within our Creelman enhanced oil recovery (EOR) project area valued at $3.4 million (the Transaction). Upon the successful closing of the Transaction, our liquidity will increase to over $600 million and we will reduce our secured term credit facility by $150 million to $1.15 billion. We are also providing updated guidance to reflect the effect of this divestiture.
THE TRANSACTION
The Transaction consists of approximately 3,300 boepd of production (96% light oil) and 13.2 million boe of proved plus probable reserves. The assets being sold represent approximately 8.5% of our July 2014 estimated production and approximately 7% of proved and probable reserves (based on our December 31, 2013 independent engineering evaluation). The purchase price received for the assets consists of total cash consideration of $375 million, before customary adjustments, and 3 key parcels of Bakken rights that enable us to expand our Creelman enhanced oil recovery project, valued at $3.4 million.
The Creelman Bakken properties received as part of the Transaction directly offset our successful natural gas injection scheme in the Bakken. Consolidation of these assets gives us 100% working interest ownership in a proposed 11.5 section Unit. Within the proposed Unit, we currently have three active injection wells with a fourth well expected to be on injection by year-end. The consolidation will allow for accelerated expansion of our EOR injection schemes.
Asset Sale Details:
-- Approximately 3,300 boepd of southeast Saskatchewan light oil production
(July 2014 field estimate)
-- 13.2 million boe (96% light oil) of gross proved plus probable reserves
(as evaluated by Sproule Associates Limited according to NI 51-101
adjusted for production up to June 30, 2014)
-- 76,882 net acres of land, which includes 55,471 net undeveloped acres
-- The asset disposition includes 450 net wells, including $38.5 million of
abandonment and reclamation liabilities
Key Metrics of the Transaction:
-- $114,700 per flowing boe (July 2014 field estimate)
-- $33.74 per boe of gross proved plus probable reserves (including future
development capital of $67 million)
-- 5.6 times annualized current cash flow
The Transaction will have an effective date of July 1, 2014 and, subject to satisfaction of all conditions and receipt of required regulatory approvals, is expected to close by the end of September 2014. TD Securities Inc. acted as our financial advisor on the Transaction.
Re: Lightstream Resources (LSTMF)
Dan, what are your thoughts on the LSTMF action? I must admit I'm rather surprised to see it red after closing on the latest
asset sale. What exactly am I missing?
TIA
asset sale. What exactly am I missing?
TIA
Re: Lightstream Resources (LSTMF)
This sale completes their asset divestiture program a year ahead of schedule. It should make the bankers very happy. It also makes the monthly dividends rock solid. Investors in this for the dividends should be very happy.
When I talked to Lightstream at EnerCom they said that after they close this sale they will develop a plan for growth for 2015 and beyond. Lightstream still holds thousands of low-risk drilling locations in the Bakken and Cardium.
I will update my forecast model tomorrow.
When I talked to Lightstream at EnerCom they said that after they close this sale they will develop a plan for growth for 2015 and beyond. Lightstream still holds thousands of low-risk drilling locations in the Bakken and Cardium.
I will update my forecast model tomorrow.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Lightstream Resources (LSTMF)
I for one am anxious to see the update. I keep thinking things are getting better at the very least but the market
sure hates this one. Down 36% in 2 months even after making the promised changes is a bit difficult to comprehend
and not the least bit helpful to my pf.
sure hates this one. Down 36% in 2 months even after making the promised changes is a bit difficult to comprehend
and not the least bit helpful to my pf.
Re: Lightstream Resources (LSTMF)
Lightstream continues to be taken out behind the woodshed and beaten to a pulp. September is again a brutal month for the energy sector. This time, I've decided to hold and not get spooked into selling this sector. Several years ago I recall a similar shoulder season selloff, and I sold, and a year later I regretted getting out. As long as the dividend is secure here, I'm content to collect the monthly income from Lightstream and hope for better days ahead.
Re: Lightstream Resources (LSTMF)
In retrospect, before investing in the sector, I should have investigated the implications of seasonality and the chart patterns, effect of the dollar and the impact of US drilling and perceived oversupply.
Oh well, ya live and loin......
Oh well, ya live and loin......
Re: Lightstream Resources (LSTMF) & oil $$
While PWE took a minor hit today, cushioned by its recent reassuring news, LSTMF really got shivved. I'm inclined to
think hyperactive shorts and prejudices were at work, but I'm uneasy that someone(s) may know more about the
bad news from Swan Hill than has come out so far. They were investigating the tech details for Sept, last we heard.
Well, it's Sept.
This serious change of mood from oiljack on his IV board:
<<http://www.investorvillage.com/groups.a ... d=14203546
If the economy is a robust as mainstream sentiment thinks, then consumption picks up and all's seemingly well.
Otherwise . . .
think hyperactive shorts and prejudices were at work, but I'm uneasy that someone(s) may know more about the
bad news from Swan Hill than has come out so far. They were investigating the tech details for Sept, last we heard.
Well, it's Sept.
This serious change of mood from oiljack on his IV board:
<<http://www.investorvillage.com/groups.a ... d=14203546
If the economy is a robust as mainstream sentiment thinks, then consumption picks up and all's seemingly well.
Otherwise . . .
Re: Lightstream Resources (LSTMF)
Perhaps I should trade in my Honda Civic for a huge gas-hogging SUV like I see most of the folks driving around here, and help stem the decline in global energy demand. Call me a big chicken, but my PF is concentrated in the high yielding dividend payers in our EPG High-Yield list, along with a couple other MLPs and oil/gas royalty trusts, and a couple "conservative" bond closed-end funds trading at fairly large discounts/NAV these days. When the $$ distributions hit my account, I'm letting that cash sit idle waiting for some even better bargains to appear. My problem is I am terrible at calling the bottom, just when I thought LSTMF had hit LT support on the chart, it fell thru that support today like a brick thru wet tissue paper. Oh well, no pain, no gain.