It is all about the taxes credits.When I saw the reserve report, I was deeply disapointed, I was all in in VLE. The report indicated the NPV10 of all developed assets incl Wassana was a minus $200M. Wow, no wonder Valaura had it for free. Right there I decided to sell my shares, red flag, Sold all at $3.30. I now understand why they had such a good deal. The value is in the 2P, but you have to invest and Mumbala wanted to invest in gas.
Total 2P is $261M if they develop it well. End 2022, they had $20m in cash and receivable, with $11M debts. They also had a 6M deposit for the acquisition. They got $7.4M with the secondary,Increase their debts by 40M, had to put $18M for a credit letter and finally they got paid $104M to buy the asset.Prior to expanses, Cash and rec would be $160M with $51M in debts before expanses, so $100M.
So fully valued at 2P would be $4.60Cdn, not the double I was contempling. However, we finally got some details on the tax credit that could be $257M, take out the credits already used for the mumbala assets in the reserve report of ard $25M, and you get an other $C3 cdn per share.