GREY:MGMCF - Post by User
Post by
wolfe001on Mar 09, 2014 11:02am
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Post# 22299623
what is MGX worth?
what is MGX worth?Given the glut of gas right now in North America and no way to get Mackenzie Delta gas in particular to market, and MGX's dry holes for convential oil i understand the historical lost share value --but what is it worth to the majors to add MGM reserves to theirs, and why hasn't someone put in a nat gas - electrical and steam heat generation in at Norman Wells?
What are the 470,000 acres held by MGM, and the potential multi billion barrels under them worth?
The real economic value will presumably be clear only to Husky and Conocco after they get the results back from the horizontal wells being drilled now.
But you would think any kind of decent evaluation would be a couple of hundred million and a corresponding offer of 30 or 40 cents a share. Still seems like a pretty cheap option for any of the majors and i am particularly surprised Shell has not made an offer to cover themselves in case Husky and Conocco find the play prolific. Pretty cheap insurance even at a couple of hundred million..
The floor looks like 20 cents and I will be happy to get out even at around 30 cents and estactic at 40 cents plus in cash or stock from a major. The results from the Conocco horizontal wells will be the driver I suspect.