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NORTHERN BLIZZARD RESOURCES INC T.NBZ

"Northern Blizzard Resources Inc is engaged in the exploration, acquisition, development and production of petroleum and natural gas reserves in western Canada."


TSX:NBZ - Post by User

Comment by agoldbloomon Aug 25, 2016 11:23am
313 Views
Post# 25176053

RE:RE:Opinion

RE:RE:OpinionI respectfully disagree.  Shareholders equity is an estimate of value.   Periodically, according to accounting rules, companies need to revalue their assets.  For resource companies, this involves many estimates - of the resource in the ground, of the amount of the resource that they will be able to economically remove, of current and future prices.  Lots of variables.   In terms of NBZ's assets, they have heavy oil which trades at a discount to the WTIC that you see in the papers.  So when WTIC is depressed as it is now, heavy oil suffers even more, but this is where NBZ's management should be commended.  Or perhaps it's the major shareholders that should be commended as they may have forced the hedges that were in place for 2016, some for 2017 and 2018.  They've sold contracts on their production at close to $80US this year, I believe $60ish next year - and not for a small proportion of their production.  That's why the big yield - analysts know that this cannot continue indefinitely since any new hedges put in place will be a lot lower than the $60-80US that they've been able to secure in the past.  NBZ is fine and realistically, if markets turn up in the next year, the share price will take off.  I'm seeing a reverse head and shoulders forming in the charts of the price of oil....a very good sign for oil investors.  In the meantime, a 10% yield is fantastic!
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