Sprott Global Resource Investments Private Equity. Real Assets.
 

Long Run Exploration Ltd.

Long Run Exploration Ltd. (“Long Run”) is a publicly traded (TSX:LRE) oil and natural gas company with assets in the Western Canadian prairies. Long Run was formed in October of 2012 through the merger of WestFire Energy Ltd. and Guide Exploration Ltd. The combined company has more than 1.8 million acres of land, 25,300 boe/d of production (52% oil / 48% gas), a large inventory of exploration and development opportunities and $1.3 billion in available tax pools. Long Run began paying a dividend in 2014 and Long Run's management looks to provide a sustainable yield plus growth to its shareholders.

Strong Production Growth

Long -run

 

Investment History

  • In 2009, partnered with proven management team to buy a distressed oil and gas company, Orion Oil and Gas, at a deep discount
  • Acquired initial assets with cash and shares for $105 MM. Orion merged with WestFire Energy Ltd. in 2011
  • Invested $50 MM in Galleon Energy which was trading at a large discount to the underlying value of its assets
  • Former management team from Penn West Petroleum brought in to initiate the company’s turnaround. Galleon name changed to Guide
  • WestFire and Guide merged to form Long Run Exploration
  • Partial realization Q2, 2014 through secondary offering

 

Further information on Long Run Exploration Ltd. can be obtained by visiting its website at longrunexploration.com

 

INVESTMENT DATES

Q4 2009 (Auriga Energy Inc.)
Q3 2011 (Galleon Energy Inc.)
Q4 2011 (Galleon Exploration Ltd.)
Q1 2012 (Guide Exploration Ltd.)

CORPORATE STRUCTURE
Public TSX:LRE

CURRENT INVESTMENT
$99.8 million*

PERCENTAGE OWNERSHIP
11.9%* 


Total Investment: $154.7 MM
Realized proceeds:      $64.3 MM
Dividends Received: $8.8 MM*
Unrealized Value: $73.4 MM1
Timeline: 2009-Present
IRR: -1%

 

*As of September 30, 2014
1. Based on closing price of $3.19 per common share on 10/31/2014. Internal rate of return (“IRR”) is a non-IFRS performance measure and should not be considered in isolation or as a substitute for any other financial information prepared in accordance with IFRS. IRR does not have any standardized meaning prescribed by IFRS and is therefore unlikely to be comparable to similar measures presented by other issuers.

 
 

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