Lightstream Resources

[dan_s]

I talked to the company yesterday. Asset sales and cash flow from operations are more than enough to keep the banks happy and pay dividends. 3rd quarter results should be very close to my forecast, which you can find under the Watch List Tab.

Cash Flow Per Share from operations will be approximately $3.20Cdn this year.

Cash flows exceed capital expenditure, so Lightstream is generating "Free Cash Flow".

There is near zero risk the dividends will be cut, unless there is a significant drop in oil prices. Even if oil goes to $80 tomorrow and stays there, Lightstream will remain cash flow positive.

[jsb1949]

Dan, any thoughts on the destruction of LSTMF?

TIA

[k1f]

LSTMF closes sale:

<<https://finance.yahoo.com/news/lightstr ... 00447.html

Commodities still getting hammered today as US$ continues to fly. Pressure on gold eased for the
time being.

[setliff]

DXY's down, cl's up--so far so good as of this writing.

[dan_s]

This sale is a good thing. Lightstream raised more money on asset sales than expected - $725 million vs. $600 million, used it to reduced debt and they continue to generate free cash flow from operations. Their balance sheet will be in decent shape by year-end. 3rd quarter production should be approximately 41,000 boepd (80% light oil) and 4th quarter production should be approximately 36,700 boepd (78.5% light oil). First half of 2015 should be approximately 36,000 boepd, then they should begin ramping up production again to an exit rate near 38,000 by 12-31-2015. 2015 capital program should be fully funded by cash flow from operations. Lightstream is going to be fine and unless there is a big drop in oil prices (below $80Cdn/bbl) the monthly dividends will continue. You can find my detailed forecast model for Lightstream under the Watch List Tab.- Dan

CALGARY, ALBERTA--(Marketwired - Oct 1, 2014) - Lightstream Resources Ltd. (the "Company" or "Lightstream") (LTS.TO) is pleased to announce the closing of our previously announced 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. Proceeds include cash consideration of $375 million (before customary adjustments) and three key parcels of Bakken rights valued at $3.4 million that will enable us to accelerate the expansion our Creelman enhanced oil recovery ("EOR") project.

Further positive attributes of this transaction include: the elimination of $38.5 million of future abandonment and reclamation liabilities on our balance sheet to reflect the disposition of approximately 450 net wells and associated facilities; a reduction in our capital expenditure guidance for 2014 by $15 million; and the elimination of future regulatory compliance costs associated with sour gas venting at these properties.

Consistent with other divestment activity in 2014, we applied cash proceeds to reduce corporate debt which, pro forma June 30, 2014, and following the transactions to date, is approximately $1.5 billion. The amount drawn on our secured term credit facility is now approximately $500 million, leaving $650 million of available liquidity under the facility.

With our balance sheet strengthened and divestiture targets exceeded, we remain focused on operational efficiency and the effective deployment of capital in our core operating areas. We currently have 3 rigs drilling in our Cardium business unit and a 4th rig active in our Bakken business unit. We are also on target to commence natural gas injection in two further patterns in our Bakken EOR initiative before year end.

[jsb1949]

I certainly thought it was a good thing though the stock price suggests otherwise. I am at a loss, no pun intended,
to comprehend the price action on this stock.

[k1f]

As of 3:45, LST is @ an all-time low of 4.25 = 9% drop, on heavy volume (407K+ shares). Somebody must dumping shares at any cost.
Has this been a waterfall of stops? Does make a body wonder if someone knows something about drillbit results, eg, that has yet to see light of day.

[jsb1949]

It's been in free fall for months. Biggest loss I've ever suffered in 24 years of investing and I still don't even comprehend
the reason for it. I haven't bought anymore (I've got more than enough) nor have I sold any. A year from now I'll either
be relieved or regret having ever heard of this one.

[Laurin_DE]

interesting read:

http://premium.investorvillage.com/grou ... d=14239872

[bobs]

not a premium member........can you pass on the hilites??