So cheap...I've got a portfolio of junior oils and they've all moved close to fair value (and some, above fair value and I've been selling). But IAE is trading at a huge discount for whatever reason and I've been loading up. It's cheap on all metrics - debt adjusted cash flow and reserves - a rare combination.
With current ~$57 bbl oil prices, IAE is generating ~US$36/C$43 bbl netbacks.
Assuming 7000 bpd, that's ~C$110MM annualized vs current mc of C$90MM and EV of about C$130MM or roughly 1x dacf. Even in this crazy market, ~1x cf multiple is a rarity. A few months ago, more than a few plays were trading at those levels, but now they've all doubled, tripled or quadrupled....
And with 28.5MM bbls 2P, IAE is trading about C$4.50 bbl, half what BVX and OIL sold in distress sales at the bottom when oil was in the low $30 bbl range and the world was assumed to be coming to an end. And in comparison to what Endeavour recently sold their Norway production ($20 bbl 2P), IAE's valuation looks absurd.