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Equal Energy Ltd EQU



NYSE:EQU - Post by User

Comment by sculpin2on Aug 26, 2012 3:57pm
163 Views
Post# 20262256

RE: RE: upping price target to $7.4+

RE: RE: upping price target to $7.4+

I personally believe that $250mm undervalues the Hunton/Mississippian. Should probably be valued at between $40K to $50K per flowing barrel. With 6 wells at 50% interest going into the Mississippian this year & strong production at Hunton Equal will probably produce well over 9,000 boed from this area in H2 2012 - this would value this asset at $360MM to $450MM. This valuation would not be a stretch on cash flow if we see >$4 mcf NG, a return to historical propane pricing & $95 WTI in 2013. The massive drop in NG directed rigs should begin to have an effect at some point in the next 6 to 9 months. 

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