Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

CanAsia Energy Corp V.CEC

Alternate Symbol(s):  CECAF

CanAsia Energy Corp. is a Canada-based junior oil and gas company. The Company is engaged in the exploration for, and the acquisition, development and production of, crude oil and natural gas reserves. The Company, through its subsidiary, Andora Energy Corporation, is focused on developing the bitumen resources at the Sawn Lake property using steam assisted gravity drainage (SAGD) development. The Company has working interests in, four heavy oil sand leases with 27 sections (24.25 net sections) of Sawn Lake Alberta Crown oil sands leases within the Alberta Peace River Oil Sands area. In the Sawn Lake Central area, it operates with a 100% working interest in two oil sands leases with 11 gross sections (8.25 net sections). In the Sawn Lake South area, it operates with a 100% working interest in three oil sands leases with 16 gross sections (16 net sections).


TSXV:CEC - Post by User

Post by nozzpackon Feb 05, 2022 11:04am
335 Views
Post# 34400879

Statistical Estimates of Net Asset Value

Statistical Estimates of Net Asset ValueThis can be approximated by anyone through a few calculations.

The key here is the value of the Thai investment, the net book value and quarterly oil prices.

Quarter       Oil Prices                   Thai Invest                   Book value

Q2                  $68.83                     $21.7 m                        $49.8 m
Q3                  $73.47                     $24.6 m                        $52.2 m
Q4                  $79.58                    ( $28.4 m )                   (  $56.0  m )

$28.4 m = $24.6 m less $21.7 m  times 6.11/4.64    where $4.64 = gain in oil price from Q2 to Q3 and $6.11 is gain in oil price from Q3 to Q4 which equals about 1.32 elevation factor.

Whence $24 .6 less $21.7 times  1.32     = $3.83 gain in Thai Invest at exit Q4/21 which boosts Thai value at $28.4 m at exit Q4/21  

This amount boosts the book value to $56 million at exit Q4 which is about $1.12 per share.

The question is whether the buyer will pay more than the fair value of the Thai Investment ( $28.4 m ).

Its my opinion that the buyer wont as the shareholders might not see that as getting good value.

This is a personal judgement based on historical outcomes.

So, my call is about  $1.15 per share in book value at Exit Q4/21 ,which, after the dividend is paid ,  reduces to $0.75 per share for the rump which will contain about $37.5  million or so in net cash after the Thai invest is sold and remaining liabilities and transaction costs are paid.

GLTA



 
<< Previous
Bullboard Posts
Next >>