TSXV:SXSH - Post Discussion
Post by
marvelgold on Apr 30, 2012 10:17pm
Valuation comparison
Last Friday, NiMin Energy put out a news release stating that they agreed to the sale of its assets in California's San Joaquin Basin for 27 million USD. This gives us a clue as to how the resources in this area are being valued.
NiMin has 11.9 MMB of proved+probable oil in their Plato Creek, San Joaquin Basin property. Dividing 27 million by 11.9 million gives us 2.27$ per MMB.
Using the low estimate of 19 MMB only from Solimar's Temblor field on the Kreyenhagen property of discovered resources (PIIP) would give us a value of about 0.09 per share (19 million x 2.27 / 446 million shares = 9 cents per share. Adding the value of Paloma will give us another 9 cents. So if a buyer were to step forward now and make an offer on Solimar's San Joaquin assets it would be reasonable to assume the bid would be at least 0.18 cents per share. This would be the floor on any bids, with much more potential upside as development progresses.
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