OTCPK:WSRLF - Post by User
Post by
TangoPrinceon Aug 24, 2013 1:05am
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Post# 21694746
Bear-scenario valuation
Bear-scenario valuationCF: In the event that K-3 turns out to be non-commercial, Baram shows only water at TD, Hazira adds little to contingent resources, and DST 2 proves to have been a structure-wide oil-water contact zone:
- Would the company still be of interest as a potential take-over candidate to a major oil company in 2014 or 2015?
- If so, what reasonable valuation could we ascribe to it, assuming just the current discoveries?
- If it would not be of interest to an oil major given the above scenario, what is the intrinsic value of the company as a going concern (perhaps assuming cash flows from only S1 and K2) ?
- What do you feel is the proper way to look at the valuation in this worst-case scenario?
TP