BELLAMONT EXPLORATION B V.BMX.B

What makes SRX so valuable?

[amp7]

So          BMX with 2,200 BOE (48% liquids) valued at                                                    $82.6M.
              SRX with 1,100 BOE (18% liquids) valued at $3.75 * 26,376,970 or             $98.9M.
              SRX to tap the market for $25M at $3.40 a share. Obviously worth less than $3.75.
              SRX currently trading at $3.30 a share. Probably worth less than $3.40.

If I hang in, it’s likely I end up with SRX shares. I find it difficult to see how SRX with half the flowing BOEs (82% gas), and fewer oil prospects, is somehow worth more than BMX. What am I missing? What makes SRX so valuable?

Anyone care to put a value on where 62.2M SRX shares will be trading post financing and merger.

[amp7]

Correction; I should have added on BMX's $40M debt which makes it $122.6M, but the question stands given that SRX is saying it will shut in gas so these reserves can't be all that valuable. Why is the street placing such a high value on SRX? What's the going rate for a BEO of oil and a BOE of NG these days?

[fullyautomatic]

Agreed, I don't see the value here either. Storm owns 5 million shares in BMX, due to the sale of the previous incarnation of the company sold to Arc resources. They also own shares in Chinook resources due the same agreement. I don't like Storm or Chinooks lands, current, or future prospects. This share ownership may explain some of the inflated market cap. Also may be some "

[amp7]

Based on my math which should be taken with a grain of salt, if everyone takes the cash, one ends up with 13.23 cents in cash and .110466 SRX share per BMX share. With the current $3.30 price on SRX shares this should translate into 49.68 cents per BMX shares. Guess BMX shareholders selling at 45 cents don’t think the 3.30 price for SRX will hold going forward. In the end, that’s what makes a

[dixonstalbert]

If everyone takes the maximum available amount of cash: $20 million cash divided by 151 million BMX shares outstanding (Dec 7 press release) = 13.2 cents per share. I think you would then get the remaider of the 56 cents (42.8 cents) in Storm Resources stock- How many Storm shares would be based on whatever the Storm share price is in March when/if the deal is approved by the shareholders. Does

[PAGODA5]

Yes I believe how that it will work.  Almost certainly, the cash will be gone quickly.

[amp7]

You may want to ask the company directly, but I believe that the number of SRX shares you end up receiving will be based on the $3.75 price specified in the press release, not the price SRX is selling for when the deal closes. If the SRX share price were not constant, they would not be able to specify the number of 16.7M SRX shares if all shareholders take the cash. $62,600,000 / $3.75 = 16,693

[dixonstalbert]

I wrote BMX and asked them to clarify the formula. I have posted their reply below. The formula they give doesnt give the answer they give- unless you add some brackets around the (.56-.132) part. In any case, the value to BMX shareholders would be exactly as amp7 shows of:         .132/ share cash +  ( .1103 X SRX price) So here would be the value for

[hawkowl1]

I sold the day the deal was announced at .51 cents to .465 cents. Had a large position and wanted nothing to do with gassy SRX.   Was nice to be able to liquidate my position. Bellmont had good oily properties but their gas assets are not worth much and not cash flowing enough for them to have survived and grown into an oily play. Actually I took a loss on BMX  but already in the

[amp7]

Now they are saying that the 20 day moving average for SRX was $3.88 instead of the $3.75 specified in the press release. Strange mistake to have made. Be that as it may, the real issue for me is the $150M plus value placed on SRX. The way I see it, unless something like governmental regulations come in to stop fracking, natural gas prices are going to be low for a very long time. I don’t really