OTCPK:BLKPF - Post by User
Post by
KLunsenon May 22, 2012 2:51pm
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Post# 19934437
Salman says $15..
Salman says $15.. "Summary
BlackPearl is like no other junior oil and gas producer in Canada (it is a little like Bankers Petroleum Ltd. (BNK – TSX), but Bankers operates in Albania). BlackPearl is unique in terms of having large, undeveloped resources, and visibility of growth in production from 10,000 bbls/d to 80,000 bbls/d over a 5-year period. Other producers only wish that they had that kind of potential already identified.
We expect 2012 to be a watershed year for BlackPearl as it moves a large portion of those undeveloped resources into the reserves category. The company’s largest single project is Blackrod, where the company is conducting a ‘science project’ with satisfactory results. The project is about to become ‘real’ when BlackPearl files a commercial development application, expected in the second quarter.
BlackPearl has done a good job of identifying and validating the resources in its three project areas, and getting them to the execution stage. The company may not be able to afford the capital costs associated with both the Onion Lake and Blackrod thermal projects, so that could fall to some successor company.
Our maintained $10.25/share target price on BlackPearl reflects a risked NAV of $10.63/share, discounting the value of the contingent resources by 50%. Unrisked, we think the stock is worth over $15.00/share."
Read the rest for yourself..
https://docs.google.com/file/d/0B3hZ1PNU1Ju1Z1VCd2Q5NGJvT2c/edit?pli=1
Mvh / K