RE: bought moreRock Lobster is bang on:
Lets compare the last takeover in the area, Nuloch and apply the metrics:
NULOCH
undeveloped acres: 66,200
BOE/day: 1550
Magnum paid $2000 per undeveloped acre
Magnum paid $120,000 per flowing boe
66,200X$2000= $137 million
1550 X $120,000 per flowing boe= $190 million
TORQUAY
55,000 acres X $2000 =$110 million
510 boe/day X $60,000 (let's use a conservative # here) = $30.6 million
Gives you a $140 million dollar cap.
use $1000 and acre and $30,000 a flowing boe and you still have a $70 million dollar cap.
With 48 million shares out X.26 =$12.48 million dollar cap. Torquay has no debt and can fund 2012 exploration with cash flow and bank credit line.
Oil is trading at $100/barrel.
This is significantly undervalued in terms of mkt cap and NAVPS and every other mertic and a fantastic opportunity that has minimum .80 cents written on it.
Got to love tax loss selling season.