Valuation FO versus UPLUPL gas discovered by Bruner, Laird, Law in Wyoming 1999 or so
UPL is drilling, drilling, drilling
I hold UPL, UPL price now $US 66 or so
UPL board on Yahoo is worth a look
bobw02053 is one of the most knowledgeable poster on the UPL board,
this is cut and paste of his May 4 2006 post# 81871
"This is how I calculated the valuation of Ultra based upon the price Devon paid for the acquisition of Chief:
Devon paid $2.2 billion for 600Bcf of proved reserves (and some debt) or $3.67 /Proved Mcfe.
Since Ultra’s 2P reserves are similar to other E&P companies 1P reserves, I will value Ultra as if their 2P reserves were 1P. Ultra’s 2P reserves are 6 Tcfe.
At 10-acre spacing Ultra’s 2P reserves will be approximately 11 Tcfe.
6 Tcfe at $3.67/Mcfe = $22 billion / 162.9 million fully diluted shares = $135 per share
11 Tcfe at $3.67/Mcfe = $40.37 billion / 162.9 million fully diluted shares = $247 per share"
have fun with this when you plug in 40 TCF or 100 TCF but remember
drill, drill, drill, drill for 4 or 5 years
Regards and stay long