TSXV:CEN.H - Post by User
Post by
CalifDreamingon Dec 08, 2010 11:38am
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New discovery adds over $400MM NPV10
New discovery adds over $400MM NPV10Presuming the 56MM OOIP number is correct, and applying 40% recovery, this new discovery will add ~22MM bbls new 2P reserves.
Existing offshore reserves are valued at $19.50 bbl for 2P after tax NPV10
$19.50 x 22MM bbls = $429MM or $4 share in AFTER TAX 2P NPV 10.
Then add in the ~10MM bbls they found in the Wedge and Eocene at A09, and CEN has added ~$500MM in after tax NPV10 from these three wells.
So for $5 bump in NAV, the market has "rewarded" CEN with a pathetic
.50 boost in value. CEN has gone from stupidly undervalued to insanely undervalued.
CEN management says to expect 5-6K bpd new production from this discovery. We'll soon be over 20K boed generating outstanding cash flow.
And then we are just about to enter the "high impact" drilling campaign (as if doubling reserves isn't good enough already)
CEN is a MASSIVE STRONG BUY.