Lonestar Resources (LNREF)

[dan_s]

I have updated my forecast model for Lonestar and posted it to the EPG website. My valuation increases to $11.80/share, compared to First Call's price target of $6.20.

Lonestar currently trades in the U.S. on the OTCQX. It is expected to up-list by the end of this month, which should allow a lot more funds to own it. My opinion, is that Lonestar will not be trading for less than 2X operating cash flow per share for long. My valuation above is just 4X my CFPS forecast. See the forecast model for details.

"Lonestar is making progress towards its corporate objective of moving the Company's domicile and public equity listing to the United States. On March 10, 2016 Lonestar received overwhelming approval from its shareholders in support of this objective. The Company continues to respond to comments from the U.S. Securities & Exchange Commission ("SEC"), and believes that it is close to receiving clearance from the SEC. Upon clearance from the SEC, Lonestar will schedule a second Court hearing in Australia to gain final approval of the move to the United States. Lonestar filed an application for listing on the NASDAQ: NMS and reserved the ticker "LONE" for trading in the United States, which when effective, will coincide with a delisting from the Australian Stock Exchange."