Sawn Lake is a wild card Sleeper We get $0.99 in cash and spin out of Sawn Lake SAGD project may be valued much more than the current market gives it credit
Regulatory approval was received on December 5, 2017 for potential commercial expansion to 3200 BOPD at the Sawn Lake, Alberta SAGD project (in which Andora has a 75% working interest and is the operator) using Andora’s proprietary Produced Water Boiler.
A September 30, 2019 Contingent Bitumen Resources Report (“Resources Report”) by Sproule Associates Limited evaluated Andora’s oil sands interests at Sawn Lake Alberta, Canada using forecast prices at September 30, 3019.
The Resources Report assigned unrisked “Best Estimate” contingent resources to Andora were 227.8 million barrels of bitumen recoverable (163.6 million barrels net to Pan Orient’s 72% interest in Andora) assigned to the Sawn Lake Central and the Sawn Lake South blocks of Sawn Lake, both of which are operated by Andora.
Very profitable with break even at $55 cad per barrel.
3200 bpd is 1.1 million barrels per year for a very very long period.
At $100 US per barrel times 80% times 1.25 =$100 per barrel in CAD
So, over $100 million cad per year with fund flows of $50 million + per year 6 cash flow multiple = $300 million market cap.
So, price critical but an excellent asset if that assumption is met,