GREY:BOPFF - Post by User
Post by
spastic121on May 10, 2011 2:00pm
463 Views
Post# 18554951
some rough math
some rough math6900 hectares valued at between $1000 and $5000 a hectare ($8000 to $10000was further west) yields between
.05 and
.26 per share (you need to adjust for royalty and 90% earn in).
BOR has about $4M left in cash. The cost per well up there is about $4.5M when all is said and done so BOR will have to raise equity. Assume $18M at $.30 per share thats 60,000,000 shares. (all gueswork of course). That takes things down to between $.03 and and
.17 per share. This is land only. Also consider that nothing was priced into the stock after the last deal...management could be a little more free with information and it might help the stock price.
Add in the value of the resource which using PIE's numbers but assuming only 70mmboe per well (very low) yields another
.35 to
.50 per share.
All in 0.38 to 0.67 per share value on this deal and still nothing reflected for the last one.