RE: RE: RE: Since CEX did not join in on the disco How do you get 2,000 bpd on the 2 wells? CEX owes 25% interest on 2 wells producing 2,500 bpd each = 1,250 bpd net to CEX, correct?
Also, I think the debate between buying Donnycreek and Contact is an interesting one...Donnycreek owns a 50% interest in the remaining locations. So, assuming a second 2,500 bpd well (1,250 net to Donnycreek) plus the approx. 1,000 bpd on the existing well = 2,250 bpd. At $50K per flowing barrel (which I agree is conservative), Donnycreek is valued at $110M or approx. $5.50/share.
I own both companies but I think Donnycreek has more upside given their smaller share float and larger % ownership in the area. I think the million dollar question (like you said before stateside) is how Donnycreek will finance the well scheduled to be spud in early July (financing required I think is about $4,500,000).