Claren Energy Corp T.CEN

Valuation

[u8fish]

Not fairly valued according to these guys at CC. Exploration upside has not been factored into their model. Add some exploration success which is likely and we could be looking at double digits no problem. The report sites a number of reasons for market no valuing the company appropriately and well below it's peers.

Valuation and recommendation
Our target price is based on a 5.4x multiple to our 2011 fully diluted CFPS estimate of
$1.69 and represents 1.5x its booked year-end 2009 NAVPS of $6.27 and roughly
approximates our risked-exploration portfolio NAV of $9.55/share. All of our
production estimates are based solely on development activity – no exploration success
has been included. With up to 12 exploration wells planned to mid-2011, we believe
there is clearly upside to our estimates.