Post by
TheRock07 on Apr 19, 2014 9:14am
2P Reserves net valuation
NPV10 of the 2P reserves is $115 million US.
Remove $10 million in capital costs to complete well #1 and remove $40 million to drill the next 2 wells.
Net value of the 2P reserves, discounted 10 %, then becomes $65 million US.
Additional value would accrue from the 2 million boe of Inferred ....lets say just $5 million.
So, $70 million discounted at 10 %.
This is what they should receive in any sale.
I divide by 2 to get $35 million US as a low ball conservative value.
The gas processing plant is worth at least that amount, so the very conservative asset value is about $70 million US or about 12 US cents per share
Comment by
paljoey on Apr 21, 2014 1:51pm
That there is vaue substantially above the current market cap is clear. They now need to make that strategic move , if that value is to be realized. Selling the works is my preference.