RE: O/S is 500 mthink market capitalization. Show me another company with 90 + million barrels of proven and probable reserves trading at under $5.00.
Shares outstanding times share price equals Mkt cap. Therefore $0.90 times 500 mil shares = $450M Market Cap.
Rally Energy was taken over for growing their recoverable reserves from 25 mil barrels of oil or 5% of their total oil in place to 125 million barrels or 25%. They were taken over for USD900m ie just under $8 per barrell of reserves.Bankers has 95 mil barrels of recoverable reserves which is roughly 5% of their total oil in place. Bankers is steaming the ground now like Rally did last year and IF they have the same success on percentage terms that would create almost 500m barrels recoverable. IF they are getting the same netbacks ie margin per barrel then they should have roughly $8 per barrel of value which = get this...$4 billion. Now you wonder why the Rally team came on board? With 500 mil outstanding its poetic that it equals, you guessed it $8.00 per share. There is a long way from the lip to the cup but the game will unfold this year and the institutions are paying attention to the analysts for better or worse.