Palliser Oil & Gas Corp. PSLRF

Cheap valuation ?

[Saytek]

Assuming funds flow from operations of 5,8M$ in Q4, PXL is trading at ~1,53 times its annualized cash flow.

 

According to their lastest presentation, they have a total unbooked resource potential (PV10) of 142,8M$ (2,23$/fully diluted shares).  Drilling all those prospective drilling locations could add 9520 barrels per day to current production.  Their current reserves of 3919 mboe + 371 mboe (as of dec.31 2011 and aug.31 2012 respectively) are worth 78.6M$ + 8.7M$ (PV10) alone.  This means ~1,45$/share.

 

What do you people think about Palliser's current valuation ?

 

This is my interpretation of the data and my opinion.  I could be wrong.  Always do your own due diligence before investing.

[Sir_Holler]

I I think there is suppose to be a substantial increase in reserves reported in coming months. Two year's reserves in one I believe one analyst said.   As for a valuation. If they can increase their access to international oil prices through rail I'm alot more comfortable than depending upon North American pricing. They will have 1,000 barrels, per day, being shipped by rail at

[RIG500]

WCS pricing at $64 and change...discount should shrink with new refinery demand coming online mid-2013.  2013 Scenario: avg production 3,200 boed 98% hvy oil realized price of $60/bopd & $22 per barrel opex > profit $16/boe or $18M in CF the company would CF ~$0.30/sh so right now we're trading at 2x CF. How much will hvy oil prices recover in H2-13? that's the key here

[Sir_Holler]

WTI crude may fall to $50 within two years: Bank of America By Grant Smith, Bloomberg News | Jan 21, 2013 9:18 AM ET More from Bloomberg News Bank of America Corp. repeated its forecast that U.S. crude futures may temporarily collapse to $50 a barrel in the next 24 months because of surging oil production in