RE:RE:Interesting activity in the VMWell Said EdGein! This company (CWV) is on its way to developing some Great production and funding CLL driling and hopefully maintaining its 100% ownership in VM area. Several Analysts indicated that CWV would be heading North of $2.50 /shr prior based on where we are today. I believe our production could be up 200% in a couple of years from now with the high grade properties we have in CWV.
Malcom Shaw indicated the following Conclusion on his report months ago, I believe we will be at the $1.30 level within months once Brokerage houses catch on.
Summary (by Malcom Shaw @ SeekingAlpha)
In my view, Crown Point is best characterized as a skewed risk-reward trade. My investment thesis is based on my belief that the exploration targets provide exposure to outsized upside while the existing reserves and development wells should provide a solid value backstop close to core NAV.
The company has a clean balance sheet and is well funded to carry out its 2014 program, with an enterprise value of around half of what I view as a truly base-case NPV10. In terms of upside potential, I would suggest that the low-risk PQX-3 well could define something in the order of $50-60 million in incremental value (roughly equal to total current reserves), while the two Cerro de los Leones wells could each define $35-125 million in value on success. Recall that this is all on a company with a current enterprise value of $28 million.
Despite encouraging early data, I have assigned zero potential value for any prospective resources in the Vaca Muerta shale. Perhaps after one or both of the Cerro de los Leones exploration wells have drilled through this shale on the way to their target depths, I may have more commentary on the topic.