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Bowood Energy Inc V.BWD



TSXV:BWD - Post by User

Post by sureshotzon Jan 10, 2012 10:26am
385 Views
Post# 19385824

Question

Question

When you think about the remaining LEG earning commitment here; 14 wells remaining at 80% of the cost it really makes you think.

Assume $5mm per well  = ~$70mm total cost, 80% of which is ~$56mm.

At present, BWD EV is ~$43mm.

So here's the question, why would you pay $56mm to retain 50% interest in the properties when you could take it all for say a 30% premium on the share price or ~$55.9mm. Especially since PIE is trading at an EV of  ~$98mm

Interesting situation?

 

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