RE:RE:Why drill when buying is cheaper ?Lets breakdown Baytex.
US EagleFord is about 28000bpd production+ 20k acres inventory drilling for 10 yrs .At 50k pfb.This asset is worth about 1.6 billion$
Other production of 50,000bpd have oil,discoubted at 50kpfb is 2.5 billion.SO next is worth about 4.1 billion. Subtract the 1 billion debt . so about 3.1 billion . with appox 540k as share count,its reasonably priced , possibly aroung 6-8$.
I dont belive in the 10-12 -20$ targets in next 2 years , unless they hit a jackpot in other drillings