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Wednesday, February 16, 2011

Petrobakken/Cardium

Pescod article had the following regarding BXE value of the their Cardium interests.  In the article the Canaccord analyst suggests 78 sections in the Cardium are worth $2 billion. 

Interestingly Petrobakken has 240 sections.  So is that worth $6 billion ???  I don't know, but it does seem strange that the stock price was punished for paying $1 billion for it as clearly it is likely worth $3 billion plus.

"Cardium light oil upside: Bellatrix currently holds 78 net


sections of Cardium rights in West Central Alberta, along

with some of the best producing wells that have been reported

in the play to date. We see over $2 billion of ultimate

Cardium upside, which, based on our forecast drilling

pace, we have calculated as $6.98 per share in potential

value."
 
Posted by Devon Shire at 3:54 AM
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3 comments:

  1. how does your estimations take into account the quality of acreage that PBN has?

    ReplyDelete

  2. In think based on their drilling results is the best way.

    http://www.investorvillage.com/smbd.asp?mb=16274&mn=311&pt=msg&mid=9896796

    http://www.investorvillage.com/smbd.asp?mb=16274&mn=308&pt=msg&mid=9895425

    http://www.investorvillage.com/smbd.asp?mb=16274&mn=309&pt=msg&mid=9896133

    By all accounts they have top tier positions.

    ReplyDelete

  3. Excellent post. Thanks. PBN and PBG are my main value play at this point, as I sold April and July put contracts and also hold long positions.

    ReplyDelete

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