GREY:CLLZF - Post by User
Post by
Wellsitteron Oct 03, 2010 9:53pm
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Post# 17523835
Here's the "Real World" OilTard
Here's the "Real World" OilTardSinopec Group, as China’s second-largest energy company isknown, agreed Oct. 1 to pay $7.1 billion for a 40 percent stakein Madrid-based Repsol’s unit, which has reserves in the samearea as the biggest oil discovery in the Americas this century.That amounts to $15 a barrel, or 76 percent above the $8.50Petroleo Brasileiro SA paid last month for assets in Brazil,said Neil Beveridge, an analyst at Sanford C. Bernstein & Co.
If you apply the same value to CLL's 600 million 2P barrels that gives a value of
$9 billion dollars. Divide $9 billion by the 429 mm outstanding shares and I'd say it's reasonable to say that China's Sinopec might consider $20.98 a fair purchase price for the shares of Connacher.
$100 oil will put a whole new light on many oil companies and their assets. At $100 a barrel, CLL's 2P assets are worth $60 billion in revenue. $9b in US garbage paper for $60b in Alberta black-gold? Sounds like a no-brainer to me.
Speaking of "no-brainer"... please see the next post.