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MGM Energy Corp MGMCF



GREY:MGMCF - Post by User

Comment by oregonmcmon Mar 07, 2013 2:31pm
206 Views
Post# 21095486

RE: Huskey insiders and share valuation

RE: Huskey insiders and share valuation

My calculations accounted for the farmout agreements. I'm using the numbers from Bill Simoes' article on Seeking Alpha:

 

https://seekingalpha.com/article/1154241-big-profits-and-big-oil-in-the-great-white-north

 

MGM: 493000 acres

Shell: 493000 acres

Exxon/Imperial: 443000 acres

Husky: 431000 acres

Conoco: 216000 acres

 

These numbers don't include their newest acquisition, but don't account for the farmout agreement. After you account for the farmout and the new acreage, you end up with 436000 acres, which is the number MGM gives in their 2012 CAPP presentation (after you factor out the farmout). MGM calculates around 5.5 bbl oil originally in place, not including their 2012 acquisition. If you add NGLs at a 6:1 ratio to oil, you end up with somewhere between 8 and 10 bbl of oil equivalent originally in place.

 

I think the lack of volume is kinda like the calm before the storm. No one has any more information now than they did a couple months ago, even Husky, when the price first started to rise, so there really aren't any new buyers. The price basically doubled and it will take more information to move it up any further. Still, no one is really selling at these prices, so you end up with no volume.

 

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