Second Wave Petroleum Inc SCSZF

RE: Comparison with ARCAN

[iaminvestor]

 

1)  Arcan has EV= 400 M   currently. After the latest news from Arcan and SCS, Arcan has ALMOST double production from SCS  (3,900  vs  2,100). Actually it is LESS than DOUBLE but let's assume it is double because ARN is more oily than SCS.

 

2)  Both companies have also infrastructure in place ready.

 

3)  SCS sits on the SWEET SPOT of BHL while ARN does  NOT sit on the sweet spot.

 

4)  SCS has no converticle notes as debt  while ARN has.

 

As a result, SCS should have AT  LEAST half the EV of Arcan, thus SCS should have an EV of 200M currently. Exclude debt, SCS should have a  MARKET  CAP   around  $110 M  today  MIMIMUM.

 

In other words, SCS should be at $1,20-1,30 today with SCS producing around 2,200 boepd currently.