Lightstream Resources Ltd. (LTS.TO and LSTMF): An updated Net Income & Cash Flow Forecast model has been posted under the Watch List Tab.
I have lowered by Fair Value Estimate by $0.60 to $17.90/share to reflect the company's lowered production guidance, offset by higher realized oil prices.
Q3 production is forecast to be down slightly but revenues will get a boost from an expected $5.00/bbl increase in realized oil prices.
Lightstream Resources (LSTMF)
Lightstream Resources (LSTMF)
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
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prince_jake_33
- Posts: 242
- Joined: Mon Apr 26, 2010 2:21 pm
Re: Lightstream Resources (LSTMF)
From Devon Shire's article
If Oil Prices Are Going To Stay High, What Should Investors Do?
I believe that the first thing investors should do is start thinking very long term. If I'm right about oil prices going higher and higher over the coming decades, then we want investments that are built for the long term.
I think the best way to take advantage of long-term high oil prices is to invest in companies that have locked up huge acreage positions in the known oil resource plays in North America.
The acreage positions that these companies have secured has them sitting on hundreds of millions, if not billions, of barrels of oil.
Today with $90 oil and current techniques/technologies, only a small percentage of that oil is recoverable. I believe with each passing year, these companies (and the entire industry) are going to figure out how to get more oil out of these plays. The rising price of oil will also allow for more oil to be extracted profitably.
This is best understood through an example.
A Canadian company I own called Lightstream Resources (PBKEF.PK) has a large position in the Canadian portion of the Bakken. On the acreage Lightstream owns, the company sits on 1.69 billion barrels of oil.
The current reserve bookings for Lightstream assumes only 5% of that oil will be recovered.
(click to enlarge)
With every 1% increase in the amount of that oil in place that can be produced economically, Lightstream is going to add (1% x 1.69 billion) 17 million barrels of reserves. If the company increases recoveries by 10%, it is going to add 170 million barrels.
I believe that time and an increasing price of oil is going to keep making the acres Lightsteam and other companies like it own more valuable with each passing year.
If oil goes to $500 per barrel in 2040 as Britain's Ministry of Defense expects, then these companies are going to be money printing machines.
Five Tight Oil Resource Players To Invest in For the Long Term
Despite the boom in oil production in North America, there really aren't very many oil resource plays. The significant ones are:
- Eagle Ford (Texas)
- Bakken (North Dakota)
- Cardium (Alberta)
The five companies below have leading positions in these key plays and should benefit from those positions for the next 40 years. I think together they make a nice basket of tight oil producers to put in a portfolio.
EOG Resources (EOG) - Your exposure to the Eagle Ford and Bakken
Continental Resources (CLR) - Your exposure to the Bakken
Penn West Energy (PWE) - Your exposure to the Cardium and other smaller plays
Crescent Point Energy (CSCTF.PK) - Your exposure to the Canadian Bakken and other smaller plays
Lightstream Resources - Your exposure to the Cardium, Canadian Bakken and other emerging plays
I have no idea where the stock prices of these companies will go over the next year. Over the next twenty years, I think these companies have assets that will be the envy of the entire industry.
Source: Why Is Britain's Ministry Of Defense Predicting $500 Per Barrel Oil Prices?
If Oil Prices Are Going To Stay High, What Should Investors Do?
I believe that the first thing investors should do is start thinking very long term. If I'm right about oil prices going higher and higher over the coming decades, then we want investments that are built for the long term.
I think the best way to take advantage of long-term high oil prices is to invest in companies that have locked up huge acreage positions in the known oil resource plays in North America.
The acreage positions that these companies have secured has them sitting on hundreds of millions, if not billions, of barrels of oil.
Today with $90 oil and current techniques/technologies, only a small percentage of that oil is recoverable. I believe with each passing year, these companies (and the entire industry) are going to figure out how to get more oil out of these plays. The rising price of oil will also allow for more oil to be extracted profitably.
This is best understood through an example.
A Canadian company I own called Lightstream Resources (PBKEF.PK) has a large position in the Canadian portion of the Bakken. On the acreage Lightstream owns, the company sits on 1.69 billion barrels of oil.
The current reserve bookings for Lightstream assumes only 5% of that oil will be recovered.
(click to enlarge)
With every 1% increase in the amount of that oil in place that can be produced economically, Lightstream is going to add (1% x 1.69 billion) 17 million barrels of reserves. If the company increases recoveries by 10%, it is going to add 170 million barrels.
I believe that time and an increasing price of oil is going to keep making the acres Lightsteam and other companies like it own more valuable with each passing year.
If oil goes to $500 per barrel in 2040 as Britain's Ministry of Defense expects, then these companies are going to be money printing machines.
Five Tight Oil Resource Players To Invest in For the Long Term
Despite the boom in oil production in North America, there really aren't very many oil resource plays. The significant ones are:
- Eagle Ford (Texas)
- Bakken (North Dakota)
- Cardium (Alberta)
The five companies below have leading positions in these key plays and should benefit from those positions for the next 40 years. I think together they make a nice basket of tight oil producers to put in a portfolio.
EOG Resources (EOG) - Your exposure to the Eagle Ford and Bakken
Continental Resources (CLR) - Your exposure to the Bakken
Penn West Energy (PWE) - Your exposure to the Cardium and other smaller plays
Crescent Point Energy (CSCTF.PK) - Your exposure to the Canadian Bakken and other smaller plays
Lightstream Resources - Your exposure to the Cardium, Canadian Bakken and other emerging plays
I have no idea where the stock prices of these companies will go over the next year. Over the next twenty years, I think these companies have assets that will be the envy of the entire industry.
Source: Why Is Britain's Ministry Of Defense Predicting $500 Per Barrel Oil Prices?