NAL Energy Corporation T.NAE

$$ per flowing barrel of oil equivalent

[pogohere]

Quick and dirty recalculation of the valuation of a flowing barrel of oil equivalent in this deal, given that 49% of Nal daily production is liquids, yields ~C$113,000 per barrel poe/d.  That is a discount that could attract another bid, notwithstanding the breakup fee of $45 million.  The estimated savings in annual management fees alone are $10-20 million.  PGH just might want that cash flow enough to raise their bid.

[Corrigan1]

By doing the numbers myself I'm guessing you did not include the debt that Pengrowth has to assume on a merger. Many investors seem to leave out that critical component,. Although you didn't include the components of your calculation, I'll post mine: Enterprise Value for NAL, which includes debt was show as a big round number, and is $1.9B Debt of $532M if all NAL debntures are

[pogohere]

I've done another round and still come out below your figure of $142,986/flowing BOE per day. It appears you've allowed no value at all for the dry gas production (?). I calculated the value of the gas at its economic value rather than its energy value by multiplying the gas mmcf/day by it's value at $2.50/mmcf and then divided that as if 1 barrel of oil was worth $100. I valued the

[Corrigan1]

I don`t think I could have ever duplicated your calculations because I wasn`t privy to your economic value assumption for Nat Gas production. I did think you were excluding the Nat Gas and we just calculating the liquids only production valuation - albeit without using the debt in the numerator. Thanks for the clarification.   I became a unit holder of both companies on the same day back in

[Moose999]

You Gents with your $9 and $11 costs think you're getting scre-w-ed......my cost is over $20....How am I doin? Every bloody board I have ever read...the posters salivate and dream about a takeover.  I'll tell you what....I've been on the end of about a dozen takeovers and EVERY TIME...I got the shaft.... Takeovers SUCK!