GREY:BNKPF - Post by User
Comment by
Carbonbullon Dec 16, 2019 10:10am
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Post# 30458925
RE:RE:insiders
RE:RE:insidersThe $65 dollar miracle price has one assumptions , the forward curve responds it at least the same basis. That would put the IRR on PUDS noth of 40 percent which seems to be the magic number where majors care about junior PUDS.
In the last year the market has devalued PUDS unless they reach the threshold above, once there they seem to get 50 percent of PUDS added to a PV15 discount formula , rough math would value BKX at north of 90 cents on this basis which is why I am long .
the other way to get there is to redesign your drilling program and figure out a way to increase EUR or lower costs.
Best of the holidays to all , stay informed and prosper.