Advice about CHY
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Posted: Wednesday Mar 16 6:45:53AM 2005
Doren, thank you once again for the information.
In the last few days, the price of CHY has gone up significantly. Part of that increase is due to a press release concerning an important (for CHY) increase in production. However, another part seems to be due to a «speculative strong buying recommandation» from Wolverton with a 12-month target share price of $1.25. Just yesterday, over 100,000 shares were bought through Wolverton.
When looking at past news releases, I saw that the last private placement (summer 2004) was done by Wolverton who was granted 106,679 options to purchase CHY common shares at a price of $0.45 per share (expiring on September 22, 2005).
To me, Wolverton is in conflict of interest.
Is it normal for a broker to act that way in the O&G sector?
Posted: Friday Mar 11 7:08:29AM 2005
Thank you once again for the information.
What kind of production should a company have to be considered a small producer versus a micro-producer?
Posted: Tuesday Mar 8 11:29:39AM 2005
My annualized cash flow forecast for 375 boepd of production is approximately $3.0 million or about $0.21 per basic share for Cheyenne. Average price to cash flow multiples range from about 2.5 times to 8 times with the median for small-cap producers of about 5-6 times. That does not mean that Cheyenne, which is a micro-producer, should be trading at the average but it does give you some guidelines.
Posted: Monday Mar 7 6:14:45PM 2005
I believe your should be addressing your questions to Doren not Doreen ;)
Posted: Monday Mar 7 3:46:01PM 2005
Net 1.4 wells means that of the two additional wells drilled, their share of the ownership is 1.4 out of 2... In other words, they must have been in a partnership or a joint venture "JV" with another company. Net 1.4 out of 2 is very good. It shows that they are a stronger owner than the other company(s) and will earn more proffit than the other companies from those two wells...
Hope that helps
Posted: Monday Mar 7 9:03:14AM 2005
CHY announced today that production has been increased to 375 boe per day. I have looked at their third quarter financial results, and production was 6995 boe. If I divide that production by 90 days, I get a production of about 78 boe per day (is it ok to do that?). How should that translate in terms of share price?
Obviously, the price has already started to go up. I just would like to get an idea of what would be a fair price for a company with that kind of production.
I have another question. In a previous news release, the company mentionned: «Two previous wells (net 1.4 wells) were successfully drilled and have since been brought on production.» What means «net 1.4 wells»?
Posted: Tuesday Feb 22 6:16:45PM 2005
Hi Student and D...
Just came across this interview with wallstreet reporter...
Looks like it was released today...
Posted: Tuesday Feb 22 8:11:07AM 2005
Thank you for your input on CHY. It is much appreciated!
I would dare ask you two more questions. First, in your reply you mention that it looks like a «very interesting company», and later, that you did not dig deeper into it. Was there something bothering you about CHY?
Second question, from the beginning of 2004 up to now, collectively, members of the management have bought over half a million shares (mostly on the public market - total public float is 14 millions). From what you now of this industry sector, is this indicative of something?