RE: RE: What makes SRX so valuable? Agreed, I don't see the value here either. Storm owns 5 million shares in BMX, due to the sale of the previous incarnation of the company sold to Arc resources. They also own shares in Chinook resources due the same agreement. I don't like Storm or Chinooks lands, current, or future prospects. This share ownership may explain some of the inflated market cap. Also may be some "goodwill" based on Storms management past performance which is impressive. Does anyone know why we closed at .45 instead of mid .50's? Does the market think the $20 million will be gone, and the common shareholders will end up with shares? I have copied and pasted the below from Arc's website. ExploreCo is Storm Resources
ExploreCo
Shareholders of Storm will also be receiving shares and Arrangement warrants in ExploreCo, a new junior
exploration and production company to be led by Brian Lavergne and certain members of the Storm
management team. The primary asset to be transferred to the new entity is undeveloped lands totaling
approximately 117,200 net acres in the Horn River Basin, Cabin/Kotcho/Junior and Umbach areas in
northeastern British Columbia plus undeveloped land in the Red Earth area of Alberta. In addition, ExploreCo
will retain Storm’s share ownership positions in Storm Gas Resource Corp, Bellamont Exploration Ltd., Bridge
Energy Norge ASA and Storm Ventures International Inc (to be renamed Chinook Energy Inc). ExploreCo will
also receive, subject to adjustment, cash of $5 million under the Arrangement, will have no debt, and will be
able to spend $6.5 million drilling and completing wells on the undeveloped lands prior to the closing of the
Storm Arrangement.
Horn River Basin undeveloped land (22,850 net acres, $737/acre)
1 $16.8 million
Junior undeveloped land (30,480 net acres, $85/acre)
1 $2.6 million
Umbach undeveloped land (9,487 net acres, $192/acre)
1 $1.8 million
Other areas undeveloped land (54,368 net acres, $89/acre)
1 $4.8 million
50% interest in pipeline at Junior $1.0 million
Storm Ventures International Inc. shares
2 $13.0 million
Storm Gas Resource Corp shares
3 $16.2 million
Bellamont Exploration Ltd. Shares
4
Bridge Energy Norge ASA
5
$3.0 million
$2.7 million
Spending on ExploreCo assets prior to closing $6.5 million
Cash proceeds received at closing $5.0 million
Total ExploreCo net asset value $73.4 million
Fully diluted Storm shares 49.9 million
ExploreCo net asset value per Storm share (pre-consolidation) $1.47