RE: RE: Fully valued...for now?mrmomo,
This is a good way to do you DD - stockhouse BB.
The answers you seek are extremely difficult to discover, but I'll help you out. Got to the Bankers Petroleum Webpage, click on corporate presentation, and READ.
Read a little bit about heavy oil versus sweet crude. Heavy Oil requires upgrading. Brent price is Sweet crude price. Suncor does not get NYMEX price for their heavy oil in Alberta until they upgrade it. The rates that BNK are getting for their product are better than the same product would fetch in Alberta.
Got to chart 24 of the package - look at the production number for 2010. Then look at their predictions every year - with exception of 2009 when they severely curtailed capital spending - they beat their number. 18,500 - assumes a third rig - if this compnay is not purchased before June 1, then it is likley they will deploy the third rig.
"$10 Stretch." Thats what was said about $5 last summer.