Granite Oil Corp GXOCF

Energy

Granite Oil Corp is a Canada-based oil producer based in Calgary, Alberta with lands and operations located in southern Alberta. The company is engaged in the exploration for and exploitation, development, and production of oil and natural gas. Its Alberta Bakken Properties are located in southern Alberta at the south of Lethbridge.

OTCQX:GXOCF - Post by User

Granite Oil Corp > GXO steepest discount to peers, SP to PDP value

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Comment by CDNOilInvestoron Sep 16, 2019 9:46am

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Post# 30130611

RE:RE:GXO steepest discount to peers, SP to PDP value

The March 12 press release states a PDP value of $2.29 per share for this company. Assuming debt retirement continued on through Q3, and I am sure that's Management's goal - today's extremely material change in all future strip prices for oil producers since 5% of the worlds oil supply is now OFFLINE this is extremely bullish for the future and to place a new value on GXO's Proven Developed Producing (PDP) barrels is difficult. Just off the March numbers it would be worth ~$2.50 per bbl now. This would assume full PDP replacement, and apply to the new share count (slight increase from Dec. 31/2018) plus the debt retirement of $10M to date and holding the old Sproule strip price for the valuation. This has changed now for all operators. Granite's base value could be in the range of $2.75 all in. What happened to this stock on Friday 13th who knows, but i am guessing that seller is regreting that click of a button.

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Advancing an underexplored area of the Yukon with the same geology as B.C’.s Golden Triangle