I think we will all be rewarded
for waiting until the catalyst of
Utica trade is realized in the third,
and fourth quarters.
It feels like this SO allowed some
institutions to take a position,
at a discount, and without disturbing
the price flow.
It also seems like new money and the momentum
players will revisit us at an increasing rate
soon in the next few months.
I think the NAV is above $80 today, but could
exceed $100 if the Utica proves out, giving us $15 thousand an acre or more for ALL of its Utica zone acerage, in trade for excellent developmental,liquids rich production.
Finally, I project that EVEP will trade all of its Utica Zone drilling rights for land in the Permian Basin, Eagle Ford, and/or massive bolt-on to its recently up-sized institutional position in the Barnett.
I would assume that EVEP (and Enervest) has/have had interest from numerous larger funds and institutions given the potential upside associated with the Utica. However, with the relatively small daily float of EVEP, any large fund or institution was prohibited from building a sizable position without bidding against themselves. The results of this offering, at least in my opinion, were very positive and I would not be surprised to see some new names on the unit holder table next quarter.