OTCPK:ARNBF - Post by User
Post by
prospect_93on Mar 11, 2010 11:23pm
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Post# 16874198
$30 to $70 take out price
$30 to $70 take out price
ARN reports 184 mmboe recoverable with waterflood. Let's assume they only get 1/4 to 1/2 of that, so 46 to 92 mmboe. Current production is at 2,000 boe/d?About? Three more deer mountain horizontals to come in a month or so, then add 1500boe/d. The locations really are fish in a barrel.
Take out time:
Production - 3500 boe/d
proven + probable reserves of 46 to 92mmboe (low balling)
54,000,000 company shares
Income trust will pay:
$30/boe proved + probable
$100,000 per flowing barrel
Some quick number crunching and we get a share price of $32 to $64. If they are right about 184 mmboe, then how about $128!
Just rough numbers, but lot's of room upwards of an SP $3.45. I'll be adding for quite some time.
Don't forget royalty credit for horizontal drilling. Thanks Eddy!