SDX value revisited for sake of correctness
djgt
I initially did not want to comment on your "production only valuation", which translates to CND0.05/share. But because your post was indirectly in response to mine, and your incremental value attributed to production (CND0.05/share) is incorrect, I decided to share with folks on this board the proper procedure in determining the true value of the company only in the event that they do succeed to buy the 1000 bpd field.
Here goes (all monies in CND$).
Based on my previous post ( 5/1/2009)
Net Worth - Total 5,469,771
- Per Share (outstanding, fully diluted) 0.03
To estimate the added value for the 1000 bpd field, we need to apply the relevant fiscal terms. This we do not have, but we can use those applicable to EWA Block as a guide. Please refer to slide #16 of SDX's "Winter 09 Presentation" for more info.
SDX's share of production is made up of two parts:
Cost Oil = 30%
Profit Oil =17.5% (70% x 25%)
So total production for 1 year (1000pbd x 365 days) = 365,000 barrels.
SDX's share for 1 year is (30%+17.5%)(365,000) = 173,375 barrels.
Assuming Brent is 50US$/bbl* --- Annual Revenue to SDX = US$8,668,750
Assuming Production Cost is 20US$/bbl** --- Annual Cost to SDX = US$7,300,000
Net Annual Revenue to SDX = US$1,368750
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* Net-back Value assumed = Brent ; i.e. no discounting!
** SDX is obliged to pay for all production costs i.e. total cost to produce 1000 bpd!
Accordingly the Net Annual Revenue per share (outstanding, fully diluted) = 0.01CND$/share.
So with cash on hand, assets, properties, etc. and PRODUCTION ( assuming it happens) equates to a SDX share value of CND$0.03 + CND$0.01 = CND$0.04/share!
Please do your own DD!