RE:Value of Land! 36,000 acres NPV of $300millionMr Valuepumper -
Those CAD 300m, does not only assume 36k acres ie 1/5 of the size of Altai's net accreage, its also risked for 70% chance of development, and a base case reserve with avg Marcellus-well recoveries.
Their high case is CAD 600m, and if you re-adjust for the 70% chance, its CAD 860m.
CAD 860m x 5 to account for the whole accreage, its CAD 4,3bn, so adjusted for our cash balance thats 570x the current market cap, or CAD 78/share.
Im not going to get carried away here, but to prove the point that we should NOT be trading at CAD 12m market cap today when regulations are out and actually are GOOD, far better then expected, with minimum distances to houses, roades, water reserves, cities way better than expected. Regulations are similar to as anywhere in North America BUT with particular emphasis on environment and security - exactly like in Norway whom has a strict regime and is the most green country on earth!! They run electric drill rigs and compressors, nothing new with that.
I expect 1 CAD/share soon.