GREY:TVETF - Post by User
Comment by
stockfyon Oct 12, 2019 5:31am
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Post# 30224939
RE:NAV/share C$0.14 (1P, Zero for land), Advisor for Duvernay
RE:NAV/share C$0.14 (1P, Zero for land), Advisor for DuvernayAECO has recovered a lot since the beginning of Q4 2019 thanks to the recent TSP implementation:
https://www.peyto.com/Files/PMReport/2019/PMR20191003.pdf So AECO closed at C$2.14 yesterday, a big jump from below C$1 last summer:
https://www.psac.ca/business/marketstats/
50% of TVL's total production is natural gas sold at AECO price, so the positive impact on TVL's cash flow and reserves is more than obvious.
stockfy wrote: Reserves are out.
NPV-10 is C$21 million only for the Proved reserves.
Deduct C$6.7 million working capital deficit and you get C$14.3 million.
Add the value for the undeveloped land, Duvernay and NON-Duvernay of 200,000 net acres. (?????)
But let's assume that TVL's land has zero value just for the sake of an unreal and insanely conservative estimate.
Based on 103 million shares, NAV per share is C$0.14 based only on Proved reserves and with zero value for all the land, Duvernay and non-Duvernay.
So the upside potential is significant based on the unreal and insanely conservative estimate for zero value for the undeveloped land.
Based also on its report, TVL retained an advisor for its Duvernay acreage last month:
"Undeveloped land holdings in Alberta at December 31, 2018 totalled 203,400 gross (202,800 net) acres including 100,000 net acres in the Duvernay shale oil basin. In March 2019 Traverse retained an advisor to pursue alternatives for development or disposition of its Duvernay lands."