GREY:MKRYF - Post by User
Comment by
jerrybeon Mar 10, 2016 1:31pm
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Post# 24644330
RE:RE:Reserve report
RE:RE:Reserve reportThanks. Lots of stuff but nothing formal like reserve report numbers.
The PV-10 on p. 18 is done on their own estimates and includes all possible wells. To clarify, they include for instance 137 Basal Quartz (BQ) wells in those estimates yet a few slides earlier they state that the reserves do not include any BQ wells. Not sure they should apply a risk adjustment ratio of only 85% for such wells until the asset has been proven up more.
Basically, the number on p. 18 shows a total PV-10 of $191M (which is way above current EV) but it is misleading. The banks certainly will not use these numbers. If the BQ are not proven, they will not count for banks.
I feel the firm is undervalued but I also understand why the market is skeptical. Mass needs to come clean on the assets and provide proper reserve valuation in order for us to make a proper assessment of the value we are getting.