RE:Practicalguy....I don't know what it will do to the price in the short term, but in the longer term, what they are doing with the gas is amazing.
Here is my 2016 valuation.
Current (most recent quarter, 12 mboed) gives cashflow of $140 mm/yr. 5 times cashflow gives an EV of about $700 mm, or $6.10 per share.
Incremental oil production of 6000 bopd, with a $60 netback gives another $130 mm in cashflow.
incremental gas production also gives $130 mm in cashflow.
Altogether it's makes $400 mm in cashflow, or between $1.6 and $2 bb EV.
Since there are a lot of short term investors, there are a lot that won't care what is happening in 13 months, so there is a cap in the short term on this news. The nice thing is that CNE, if the gas is not priced in by next summer, will be an easy buy and hold