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  • cpb38 cpb38 Jul 5, 2010 3:29 PM Flag


    What happened to the value of this company?

    Valuations used to be done on 9,600 acres times $ 25,000 per acre.

    Now the presentations shows 4,300 net Haynesville acres. The other acres are Cotton Valley that would not fetch the same $/acre.

    The latest Exco/SW Energy had a valuation of $ 17,700 per acre.

    4,300 X 17,700 = 76.1 mil. or about $ 1.00 per share
    Now add an amount for Cotton Valley
    and we can see this company is undervalued, but not by nearly as much as last year's calculations that came out to $ 4 per share.
    New share issuance has contributed to the dilution. Some of these shares are to be issued at $ 1.20. What if the stock doesn't hit $ 1.20 and those shares were never issued?
    There may be an upside to a downside

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    • As I recall on that well you're discussing (Red Oak Timber 6), it was the length of the horizontal that was the problem (resulting in a less than optimal production rate), and they have said XCO was giving them a redo. However, the reserves are still there, and I assume now considered proven in that section.

      QBC has already announced a 14 stage completion on the Thomas 36 well, located in a different section and not related to the Red Oak well. Apparently, to indicate that they expect a good IP result. This new well will add more to proven reserves....JMHO.

      My wild xxs guess is..that sooner or later the PPS will rise as this news overcomes whatever took the stock down these last several months. Unless they further dilute with more "compensation" to themselves...

      FWIW and JMHO.

    • I'm on to SSN. They are actually making moves with their acreage. Oil Baby and they are selling the acreage 20k acres + and using the monies to drill on the other 16k acres in Niorobi in I think the Dakota's. Stock will be over $1 very soon and new well info out on Gary Well soon. Get in on it. Mgmt is shareholder friendly unlike QBC's. Hands down Cubic should have sold when acreage was bid up to 25K an acre. They got greedy and look where that got them.

0.00160.0000(0.00%)Dec 14 2:41 PMEST