GREY:GRDSF - Post by User
Comment by
myNEXTmillionon Mar 04, 2010 11:35am
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Post# 16842860
RE: RE: Unhappy Campers
RE: RE: Unhappy CampersI contacted Jason at Redwood Capital...he said the reason is not financial. He also believes drilling this month is still on track at Black Mountain.
Could it be just shaking the trees????
Niko paid $30 million for the extra 10% interest in Black Mountain. That makes GSA's 6% interest worth AT LEAST $18 million, but that was before the initial reserves estimate of 2.7 billion bbls.
IMHO, Valuing 2.7 billion bbls at only $1, before drilling, gives GSA a valuation of $2.30 per $1 valuation of OOIP.
Now, having said that, and with drilling set to begin this month, could it be GSA is willing to sell their 6% interest once oil is discovered? Major oil companies, the likes of ExxonMobil, Shell, etc would love to get their hands on this field. My guess, hiring Jennings could be preparation for this next step.
Until I have more information, I'm HOLDING my shares. Selling at this low SP to me does not make sense in light of this major asset advancement.