RE:RE:RE:RE:RE:RE:RE:RE:RE:Type Curve From New Hz'sDitto99 wrote: News out this morning that's relevant to my previous post on land value. IBR trades at ~$800/ACRE. Conoco just bought 35,000 acres of Monntey at Blueberry (Nowhere near IBR's lands, just referencing like acreage, that being Montney). Conoco paid $120,000,000 for this, or $3,428/ACRE. There is only 3 wells drilled on these lands, so similar deliniation to what IBR is looking at right now.
In order for IBR to fetch that type of valuation they'd trade around $1.35 based on their 52,800 acres and current enterprise value.
IBR is a risky play as it all depends on if they can get wells, but relative compatibles in the industry right now point to a stark valuation disconnect and significant upside, assuming IBR gets wells.
Hard to compare apples to oranges, as the Conoco purchase was for a massively thick formation, but drier gas, but with little associated water production. Too many differences to compare directly.
Having said that, IBR is undervalued, no doubt about that. But so is just about every other Canadian energy producer, whether it be oil, gas, or a combination of the two.
Patience is required to hold any of them, but should be rewarded sometime this year.