NYSEAM:REI - Post by User
Post by
ditchdigger251on Apr 17, 2022 4:37pm
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Post# 34608705
New 52 Wk High Last Week!
New 52 Wk High Last Week!REI finally broke through the $4 barrier and even closed on Wednesday at $4.20. A swack of Call Options expired last week too with WTI hanging in strong and Henry Hub gas price remarkably over $7/mcf. That gas price is becoming a key in unlocking even more value in REI since the 3rd Core Area that no one's been talking much about is REI's Delaware Basin assets that are situation squarely in the gas prone window of the Delaware Basin. REI estimates roughly 10 years of what I assume is single rig Hz drilling (~25 wells/yr) in two relatively shallow sandstone formations called Cherry Canyon and Brushy Canyon. REI was actually trying to sell their Delaware asset but now with the much higher gas pricing and open door for the U.S. to massively increase LNG sales to the E.U. I'm not so sure. Rough back of the envelope numbers would suggest a NAV just for Delaware alone that could be twice the current share price. There's serious value in both oil and gas for REI!