RE- PAN VALUATION = $14.20/ShareIn researching further the valuation placed on PAN's Bakken potential valuation I came accross an April 18 press release from Pacific Rodera Energy PRD.V that reported a land transaction at an average $1103/acre with the Bakken acreage priced at $6830 !!!
If these numbers are correct then PAN'S 161,000 acres of Bakken land is worth as much as $1 Billion ($11/share) at market prices and no less than $175 Million ($2/share). This means that PAN is worth as a minimum NAV $4.20 + Average Land $2 = $6.20 / share, but more likely if the Bakken potential is comfirmed NAV $4.20 + Bakken Land $11 = $14.20 / Share.
https://www.newswire.ca/en/releases/archive/April2008/18/c7295.html
Pacific Rodera Energy announces new management appointment and provides update on First Nations joint venture
CALGARY, April 18 /CNW/ - Pacific Rodera Energy Inc. (TSX Venture: PRD)("we", "Pacific Rodera" or the "Company") is pleased to announce the followingrecent developments: New management appointment Mr. John Nesbitt has joined the Company's management team as VicePresident, Land. Mr. Nesbitt has over 28 years of operational experience inthe Canadian oil and gas industry. Prior to joining Pacific Rodera, Mr.Nesbitt held the positions of Vice President, Land at Capitol Energy ResourcesLtd. and Senior Landman with Talisman Energy. Mr. Nesbitt is well connectedand is respected as a creative negotiator throughout the industry. He hasworked extensively throughout the Western Canadian Sedimentary Basin and hisinnovative and proactive approach to partnerships will be a valuable additionto the Pacific Rodera team. In connection with his appointment, Mr. Nesbitt has agreed to subscribefor 388,888 units of the Company at a price of $0.45 per unit for grossproceeds of approximately $175,000. Each unit consists of one common shareissued on a flow-through basis and one-half of one common share purchasewarrant of the Company. The units, including the underlying securities, arebeing offered to Mr. Nesbitt on the same terms and conditions (other than thepurchase price per unit) set out in the Company's press release ofSeptember 5, 2007 relating to the offering in which other members of theCompany's management team participated. The private placement, which isexpected to close on or about April 22, 2008, and the appointment of Mr.Nesbitt are subject to the approval of the TSX Venture Exchange. Update on First Nations Joint Venture The potential value of Pacific Rodera's interest in the First Nationsjoint venture was highlighted by the recent Saskatchewan Crown land sale where241,020 acres of land were sold for $266 million. The average sale price was$1103/acre with potential Bakken lands selling for $6830/acre. At the requestof our joint venture partners, the Saskatchewan government imposed an 18-monthmoratorium on the sale of the Crown-owned mineral rights associated withapproximately 71,000 acres of land of the 88,000 acres initially identified.The land is located within the highly prospective Bakken play area of SESaskatchewan. Pacific Rodera and the First Nations bands are aggressivelyworking to move this land to drill ready status. The Company is alsoevaluating other available Crown-owned mineral rights associated with anadditional 17,000 acres of land. Pacific Rodera is continuing to evaluate corporate and asset acquisitioncandidates and is committed to its strategy laid out over a year ago to takeadvantage of the potential opportunities being presented as a result of thestate of the credit cycle. Pacific Rodera is a Calgary-based oil and natural gas company engaged inthe exploration for and the acquisition, development and production of naturalgas and crude oil in western Canada. The Company's common shares trade on theTSX Venture Exchange under the symbol "PRD".