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Bullboard - Stock Discussion Forum Pennant Energy Inc PENFF

GREY:PENFF - Post Discussion

Pennant Energy Inc > Using Sprott's Eric Nuttall's valuations
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Post by stateside on Jan 25, 2012 1:09pm

Using Sprott's Eric Nuttall's valuations

Blackbird (and then we can assume Pennant with the same 25% interest) is projecting a net 1,100 BOED for them by the 2ndQ once all 3 wells are tied in (from Blackbird's presentation).  Assuming 40% liquids based on the Delphi well, we have:

440 BOED liquids at Nuttall's $80,000/BOE valuation = ~ $35 million market cap

660 BOED gas at Nuttall's $25,000/BOE valuation = ~ $15 million market cap.

Since both Blackbird and Pennant have around 60 million shares outstanding and both will need to do a PP for the 3rd well and add another 10 million shares outstanding, the forecasted share price of both Pennant and Blackbird after the 3rd well comes on stream should be in the neighborhood of $.71 pre-buy-out ($50,000,000/70 million shares out)

Not bad for a few months work.

stateside

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