RE: RE: Wow! What happened to the SP? Just a cuople of comments.
1. The reserve report only relates to certain areas (bakken), I am NOT sure what the other areas' 2P #'s are. (partially because i'm feeling very lazy at the moment) We'd have to take Dec. 31 annual report, strip out the reserve information discussed then. The problem is we don't know @ what # the company discounted their NPV at. ($70 oil? $80?, knowing sproule it's probably not conservative. Something to ask the company, but i'd want them to use a $70 oil, i THINK most juniors use that # for discounting)
2. Its hard to do a quick back of the napkin calc (some #'s thrown around was $400+ million divided by their # of shares o/s, someone said $20 per bbl X 57MBBOE. Embedded in their NPV calc which is provided below ($90,704M @ 10% discount) is a lot of information. So i would think it's the $90,704/67,000 = $1.35 per share @ 2P. discount say 30% (arbitrary but what the market discounts at and we are
.95 per share of ADDED reserves.
so in essence take $1.35 and add Dec. 31, 2011 annual reserve information divided by # of shares. then take 30% of that and it's about what we'll trade at.
Maybe i'm wrong, someone correct me please!
Financing - Don't think they will need to finance, but i've not looked at this company in a while, how many more wells did they say they would drill for the remainder of the year?
The following table summarizes the Net Present Value of the Company's share of reserves effective as at July 31, 2012.