CWV to become a 10 bagger:Here`s why CWV will become a 10 bagger at minimum in the coming years (in my opinion):
Go to page 8 of their Oct/Nov Presentation, management estimates shows that they are expecting to have 141 to 171 mmboe of proven reserves after the 2012 year end. Now lets say they issue a little equity (say 20 million shares) to complete the high end of their proposed drilling of 43 wells to get the reserve number to their low estimate of 141 mmboe. Using a price of $7 per proven reserve in the ground would make that 141 worth $987 million. So given where the stock price is today, you are easily looking at a 10 bagger just based on 141 mmboe reserves.
Now here's the real interesting part, on that same page 8, it shows that gross estimated OOIP (original oil in place) is between 3.3 to 4.5 billion boe. If technology improves in the coming year more of the OOIP on their land can be moved to the recoverable category and make CWV much more valuable. Just remember that YPF originally claim to have only 150 mmboe but then upgraded that amount to over 900 mmboe. With technology, the 141 to 171 mmboe they currently estimate as recoverable can be increased dramatically. So base on page 8 estimation, you are looking at a 10 bagger at minimum, do some research and see for yourselves.