Detailed Research On ***POP/GSR JV CASH FLOW MODEL***
Hi All,
With the excellent news on this JV both stocks should move significantly higher. I have some detailed research below on what we really are looking at.
Both of the targets in Manitoba have 400 BOPD potential. Thats just light oil, not BOE Barrell of Oil Equivilent. BOE would include Oil & Gas that comands a much lower valuation.
POP & GSR are drilling South Reston first, this is the REEF as one of my last posts highlighted.
400BOPD x 18 Drill locations = 7200BOPD x (industry standard 100K per flowing BOPD) = 720Mill MCAP
720Mill MCAP / 2 (50% POP 50% GSR) = 360Mill MCAP each
This 360 Mill MCAP does not account for another single asset that either companies has.
If I included those number (other assets) that are real and do command a valuation today in the market the stock target looks actually ridiculously high. So this valuation is only based on one property under a 50 50 JV basis.
POP Valuation = $360,000,000 divided by 59,000,000 shares out = $6.10 Share Price
GSR Valuation = $360,000,000 divided by 71,000,000 shares out = $5.07 Share Price
I have been buying more POP stock and the bids keep building and moving up. I have not seen a company (POP) with this quality of assets, cash flow positive, Billion Dollar MCAP JV partners already in place ARC and Canara (both drilling), all the land 100% owned by POP & cash in the bank + going drilling on three more properties with its 3rd JV partner GSR. All I have to say is this stock is seriously undervalued.
Press release below from POP earlier this year:
SOUTH RESTON, MANITOBA
On the South Reston J4 property (2.25 sections), recent detailed seismic interpretation has clearly identified a large carbonate mound in the Lodgepole Formation. This is a large reef-like structure 100 metres thick and measures 2.6 square kilometres in extent, and has a strong resemblance to Waulsortian mounds that are highly productive oil producers in the Williston Basin. A 1,000 metre vertical well has been proposed to test this large mound, which is a strong drill target with excellent upside potential.
KIRKELLA, MANITOBA
On the Kirkella J3 property, a site has been surveyed for an 800 metre vertical well targeting seismically indicated porosity in an undrilled area updip of the Kirkella Lodgepole oil field. Two of the nearest producers at the north end of the field had three month initial production of 418 and 251 bopd respectively.Bakken production in the immediate area confirms that the100% owned J3 property has good dual-zone potential.
Read more at
https://www.stockhouse.com/companies/bullboard/v.pop/petro-one-energy-corp?postid=21935561#ZChv68q4q88QReDK.99