Chinook Energy Inc. Common CNKEF

RE:Chin up

[Miner1967]

PeterM1 wrote:

Some interesting extrapolations can be made from the recent Cardinal purchase of Apache operations in Canada.

 

Cardinal purchase price was about 80% of the NPV (2P-10%) of the assets bought.

 

On this basis one could value Chinook at about .71 cents a share.

 

Another metric one could use is the Cardinal paid $64,000 a flowing boe.

 

Chinook’s average for this year is expected to be 4,200 boe.  Using the this number, CKE shares are worth $1.24 each. 

 

However end 2017 production is planned to be 6,300 boe. Apply this number and CKE should be worth about $1.86 a share.

 

But this is not the end of the story. Chinook has only 'booked' 15% of its rights in the Montney area.  There is a lot of extra hidden value that does not factor into these numbers.

 

For those who still care, I understand that the Cardinal et al shares will be delivered next week to entitled shareholders.

It is simple, you are right.

Hope you are right about the distributed shares also, not a good time to sell any of them though.