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Diaz Resources Ltd V.DZR



TSXV:DZR - Post by User

Bullboard Posts
Comment by b00gn1shon Apr 29, 2008 2:56pm
425 Views
Post# 15020076

RE: NAV

RE: NAVI've put together a spreadsheet on the junior O&G sector.

According to YE 2007 proven reserves (not including probable) Diaz had 234k bbl and 10,535 MMcf.

Using the somewhat outdated ratio of 6:1 crude:NG gives them 11,939 MMcfe.
At $8.00 NG that gives a NAV of $1.06/share
At $11 NG that gives us a NAV of $1.53/share

Using the rather conservative 'standardized measure', which factors out recovery and retirement costs along with taxes, and uses an NPV-10 calculation, their reserves have an NPV of $41MM.  When I factor out debt and cash on hand, the company has an NPV of $0.36/share.  I believe this NPV-10 was calculated using $7.50 NG and $85 crude, but you'd have to go and look at the filing to be sure.

Under $.25 share, this stock appears to be at least 50% undervalued even by the most conservative accounting you'll find.

I owned DZR in 2005 and had decent timing getting in and out.  Have been buying shares again recently.
Bullboard Posts