I am not sure if any of you seen this write up. by CIBC release Feb 7. Man o Man do we holders of Novus got a gem in our hands.
The write up outlines that the improvements in industry type curves validates the saskatchewan viking. IPs and EUR's have risen in every production type tier. However the steeper declines moderate the economical impact of the wells.
The conclusions are:
1.Expect reserve growths and positive revised reserves.
2.The play is Ideal for juniors and intermediate producers.
3.Expect continued consolidation in the play due to the strong economics.
Further the report comments on the best way for an investor to get exposure. 3rd company Novus and they say;
We also highlight
Novus Energy (NVS–SP), a pure-play Viking company in the middle of a strategic alternatives process. At this point, we believe there is a high probability the company will be sold due to the increasing interest in the Viking play in Saskatchewan, which has already sparked a wave of consolidation among the smaller participants. We expect the potential sale price to be between ~$1.20 (based on our Risked NAV of ~$1.17) and ~$1.40 (based on a recent transaction of larger scale).