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Palliser Oil & Gas Corp. PSLRF

"Palliser Oil & Gas Corp is engaged in the exploration, development and production of petroleum including high netback heavy oil in the greater Lloydminster area of Alberta and Saskatchewan."


GREY:PSLRF - Post by User

Comment by Saytekon Jun 04, 2013 6:47pm
186 Views
Post# 21483412

RE: RE: RE: Stock price

RE: RE: RE: Stock price

I'll explain the situation.  In my opinion, Palliser is very undervalued right now.  2P NAV = 126.8M$ = 1,83$/share (fully diluted).  We are trading at 0,216x NAV.  Price per flowing boe is, in my opinion, a very bad metric to evaluate the fair value of a company.  You can have production of 3000 boe/day 100% oil but have very low reserves.  Palliser has proven its HVL concept and has improved significantly its proved reserves (+217%) since 2011.  It is a very low cost producer and should make very decent cash flow this year.  If they make 20M$ of free cash flow, that means we are currently trading at ~1,4x cash flow (crazy low valuation).  In the past year, PXL's management proven me they know how to run this business.

 

In summary :

*We are trading at 1.4x 2013 cash flow (assuming 20M$ cash flow).

*2P NAV = 126,8M$ = 1,83$/share (fully diluted) = we are trading t 0,216x NAV !

 

I am confident market will recognise PXL's potential soon enough.

 

Always do your own due diligence before investing.  This is only my opinion and not a recommandation to buy or sell the stock.

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