$45 per diluated share NAV (unrisked)HUGE UPSIDE... BEST OF CLASS - QEC.TO
THIS IS YOUR NEXT MILLION
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"Among the six juniors that are exposed to the Utica shale in Quebec, we believe Gastem and Questerre offer the best upside leverage through their acreage holding in the 'sweet spot' of the Utica shales," she said in a report to clients.
Of the two companies, Ms. Shao and Mr. Vallance said Questerre has more leverage in playing with an estimated 193,863 net prospective acres, including key permits in the Yamaska area, where Denverbased Forest Oil Corp. (FST/ NYSE) drilled two successful wells earlier this spring.
Calgary-based Questerre also has agreements with Talisman Energy Inc. (TLM/TSX) to develop more of the junior company's holdings. Talisman said recently it will focus on unconventional natural gas plays in North America, including the Utica shale in Quebec
Talisman is expected to announce its drilling program in the St. Lawrence Lowlands shortly. Based on Questerre's prospective acreage, Ms. Shao and Mr. Vallance told clients they predict a total unrisked net asset value for the company of $45 per diluted share.
Ms. Shao and Mr. Vallance said they like that both Questerre and Gastem have deep-pocketed partners in Forest Oil--and in the case of Questerre, Talisman -- who have the technical expertise to help with exploration.
https://www.financialpost.com/story.html?id=498641