GREY:NOVUF - Post by User
Post by
Tradewhoreon Nov 16, 2012 12:52pm
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Post# 20610523
Stock is worth $1.40
Stock is worth $1.40 Long Run Energy sold its Dodsland Sask assets today to a private company. Assets are contiguous to Novus' assets and target the Viking formation. The transaction value was $180M for 1,900 Boe/d, which is $95,000 per flowing barrel. If we apply that $95,000 to Novus production of 3,800 boe/d exit, we get an EV of $365 and an equity value of $300 when we back off the $65M of debt. This implies a share price of $1.43 ($300M/210M shares). Stock is up but should be up a lot more in my opinion. There is obvious interest in the Viking play in Sask and Novus is the best takeout candidate right now.