RE: RE: RE: 4x9xBGood points...
I really don't know how to value the Bakken lands yet as I'd need to see some drill results to comment. By far the real upside in the near term is the Bakken land.
I suspect the value of the CMV lands would need to risked as the previous drilling programs showed some significant structural limits to reservoir and trap sizes. IMO, if the CMV land was stratigraphically controlled your estimates would be more accurate but if the land base, at most) is only ~15-25% petroleum bearing, wouldn't that mean you'd have to multiply the total acerage accordingly (59,183 x .25 = ~15,000 NET resolurce acres)?
Using the rest of the metrics you stated the total would be ~$20M. I also think you'd need to discount the Bakken lands in some way for risk so I'd say my guess is ~$12M with a value of .20/share. Raw land verses BOE reserves has a lot more risk so the value calculated is likely on the upper end.
But, I think there is upside as the potential "sentiment" is a multiplier. Near term .20/share could be achievable.
I also have MGM in the portfolio, and it's moving in step with IFR so I can't tell if the influencing factor for IFR is the CMV or the Bakken announcements. I suspect the Bakken announcement is moving IFR and MGM is moving on it's own merits.
Anyway, it's nice to see IFR increasing; it's been a long time and any 0.005 increase is welcome.
Regards,