RE:RE:Massive Land Block Sold in NEBC - $77MM Right now the best comparable on the market are land sales ($/Acre). BBI only has one real producing well so to value on reserves (1P2P) and/or production (EV/DACF) doesn’t work. The fact is, a piece of highly prospective MNTNY land sold for a $5,600/Acre, which is rich in comparison to MNTNY transactions in the last year ranging from $2,000 - $5,000/Acre. BBI trades near $4,000/Acre. If you believe one of the lowest "target prices" (target prices are a joke by the way) of $0.70/share, that puts BBI at $9,000/Acre. I can't get my head around a $9,000/Acre valuation, sorry.
PS - NPV10 is a joke. They use 1/2 cycle economics and take the tail end of the production curve out for 20 years. Not just BBI, everyone does. No tight oil play should be declined out past 8 years, 10+ is laughable. The reserve auditors remind me of the credit rating agencies pre-08 crash. Giving AAA ratings to CC quality so that the bank continues to do business with them.
I digress. Numbers don’t lie. I've laid out my valuation thesis with real numbers. Please, show me, in your opinion, a reasonable share price 2018-2019 based on some sort of industry recognized valuation method...don’t forget to include your assumptions.