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Canacol Energy Ltd T.CNE

Alternate Symbol(s):  CNNEF

Canacol Energy Ltd. is a Canada-based natural gas exploration and production company with operations focused on Colombia. The Company’s production primarily consists of natural gas from the Esperanza, VIM-5 and VIM-21 blocks located in the Lower Magdalena Valley basin in Colombia. The Company’s production also included crude oil from its Rancho Hermoso block in Colombia (Colombia oil). It supplies approximately 17% of the country’s gas needs and more than 50% of the Caribbean Coast’s gas demand. Its gas fields which produce from the Cienaga de Oro and Porquero proven reservoirs are connected to its central Jobo gas processing and treatment facility through more than 169 kilometers of flow lines, mainly flexible steel flow lines. It operates over 1.5 million net acres in 14 exploration and production contracts in Colombia, with 11 of these contracts focused on exploring for and developing natural gas. These blocks are all located in the Lower & Middle Magdalena Basins of Colombia.


TSX:CNE - Post by User

Bullboard Posts
Post by jocotocoon Nov 01, 2010 12:01pm
599 Views
Post# 17639761

Here you go Danny and George..

Here you go Danny and George..Price/Book

The Price to Book metric measures a company’s price in terms of its total company equity. This metric is relatively more important in the oil and gas industry for the simple fact that the majority of a company’s value is easily measured by the amount of oil and gas they own multiplied by current oil and gas prices. While a tech company, for instance, would receive little to no value in its goodwill and human capital in the event of a liquidation, an oil and gas company liquidating its assets has a clear and measurable worth to them. While important, the Price/Book metric can get tricky. Significant variances in the market value of the assets a company holds and the book value - which is the at cost value of the asset on the balance sheet - can exist. If an asset’s market value is worth less than its book value, GAAP requires that the company writes the asset down on the balance sheet but if an asset is worth much more than the value on the balance sheet, nothing is changed. Combine this with the deprecation of the asset as the resources are depleted and most oil and gas companies should have a market value well over their book value. So a book value over 1 does not necessarily mean a company is overvalued, but a book value of less than 1 could potentially point out undervalued stocks as the enterprise or market value of the company could be much more than its book value. The industry metric of 3.0 reflects this as the market believes that the assets each company owns are worth way more than what is reflected on the balance sheet. Rankings are:

CMT...............0.1
OPC................0.2
PDP................0.4
AOS................0.7
OEX...............0.7
AAV...............0.8
CLL................0.8
TT.................0.9
ECA................1.2
PBN................1.3
NXY...............1.4
RE..................1.4
VRO...............1.4
QEC...............1.6
TLM..............1.6
CNQ..............1.9
ALE..............2.0
GTE..............2.2
IE.................2.5
SOG..............2.9
Industry...3.0
TGL..............3.5
PRE..............4.3
PMG.............5.1
BNK.............6.7
CNE.............8.6

Bullboard Posts