Buyback Opportunity (Cheaper then Adding Production?)POU has a very short runway to 120,000 boe a day.
Karr wells have IP365 = 1126
Wapiti welll IP365 = 856
Karr and Wapiti together = 88,500 boe day, for 25 years.
852 million POU market cap 134 million shares 120,000 boe/data
134 million/ 120,000 = 1.11 million shares for 1000 boe production.
So for 1.11 * $6.34 = 7 million dollars.
So roughly speaking for every 7 million in share bayback you are adding 1 percent to the production of each POU share. A 10 million share buyback will add 10% to the FCF of every share in the company for 70 million dollars. It has a better impact that adding 10,000 boe a day because you not consuming any resource or adding any debt or operating costs.
IMHO