I would suggest that ANY valuation on a deal is ill informed until some solid reserve numbers come to light... IF one takes the original well into consideration... and double it for the length of the "straw" (Hz section) I think that conservatively... (maybe a bit overly optimisitic) over the life of ONE well 50 BOE/d over 20 years might not be unrealistic...(18.25k BOE/yearX 20 years) and since the price of a Barrel probably won't wane to much below $100/BBL over that span... the numbers are pretty easy...cash generated over the course of 20 years... works out to $36MM/ well... subtract the cost to drill, complete, and tie it in... and on a per well basis the return would be close to $20MM/well... in toda's currency
of course that IS a grand view of things... what I am getting at ... is that BWD has the sale sign out... it's a good thing... they don't have the money to move forward... I am also suggesting that BWD's current share price doe NOT take into account the upside potential... ONCE that upside potential is revealed... I dare say... anyone on the short is going to take a hit...
do withthat as you choose... the only thing that is NOT speculative is the fact the BWD shares do NOT reflect the current upside...