CPG Waterflood results in BHL Some more facts, because the retail investors have lost any logic here and sell this low.....we know that there are ONLY retail investors currently in SCS (except BAM) and they create the market sentiment:
1) SCS has 12 MMboe (79% OIL and liquids), pbv=0.15 currently (pbv=1 at $1) and NAV = $0.80
12 MMboe X $20/boe (low acquisition metric for OILY 2P reserves) = $240 M total value - 90 bank debt = $150 M market cap.
2) Arcan has results that exceed expectations thanks to Waterflood in BHL. Arcan has $300 million long term debt (including debentures) but the market pays $100,000/boepd for its 4,500 boepd current production. ARCAN debt is way more than SCS.
3) Check out Q4 2012 report of CPG. CPG plans for BHL waterflood are well underway and the first results are expected very soon.....I quote:
During fourth quarter, Crescent Point participated in the drilling of 24 (19.6 net) oil wells in this area, achieving a 95 percent success rate. Of these, 7 (3.5 net) were drilled in the Beaverhill Lake light oil resource play and 9 (8.1 net) were drilled in the Viking area. The Company's plans for its first waterflood pilot in the Beaverhill Lake play are well underway and the first pilot is expected to be operational in early 2013. In 2013, the Company plans to reduce its capital expenditures in the area to $77 million and to drill 11 net wells to take advantage of expected declines in future capital costs in the play.