RE: RE: RE: RE: What are we worth? It is very difficult to put a value on AXL since we have so little information.
Here are some of the problems:
1. Dry Nat Gas Assets: At today's prices some would say they are not worth anything. On the plus side
however they do have very low operating costs, lots of infrastructure and very
good proximity to market. What will become of the FARM-IN arrangement in the
event of a sale?
2. Wet Gas Assets: Probably has some value but not a lot of drilling has been done yet.
3. Cardium Oil Assets: Drilling has gone very well and production is ramping up. Oil prices are high.
AXL has made three new discoveries this year. The new pool discovery at
Ferrier sounds great based on the 1st four wells drilled. We have no word on
the amount of reserves that can be assigned to these new discoveries. We
do know they have 71 producing Cardium wells which should have lots of
value. All the drilling done should bolster reserve amounts this year with an
additional increase for the three new discoveries. How much is the
undeveloped Cardium land worth? Lots of land has sold for very high prices
here and AXL itself has put a value of about $4200 an acre on it. I am at a loss
to know what it might sell for.
In summary it is very difficult to arrive at a value and this would be confirmed by the wide range
of possible values assigned in a report by CIBC listed elsewhere on this bullboard.