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Equal Energy Ltd. Message Board

  • tedtouri tedtouri Apr 19, 2012 12:14 PM Flag

    EQU: Acquisition target for $380 M minimum

    EQU has a 50%-50% mix of ng and oil/ngliquids.
    EQU has a 9500 boepd production.
    If acquired , the suitor should pay no less than $380 M, thus 40000 $ per boepd.

    Why ?
    Check the latest acquisitions below:

    1) NAL.TO (NAE energy) with the same mix ng/liquids was sold for 40,000 boepd PLUS the debt.
    NAL.TO has almost 30,000 boepd production currently.
    The suitor paid 1,3 billion $ plus the debt.

    2) CPO.V with a 75% oil- 25% ng mix produces 1500 boepd currently.
    CPO.V was sold 100 M $ which is a 60,000 $ per boepd plus its debt.

    3) WSX.V with a 90% oil- 10% ng and 6500 boepd production was sold 770 M $.

    Thus WSX.V was sold for 90,000 $ per boepd plus its debt.

    4) IAE.TO with a 50% mix and 10,000 boepd production was sold for 850 M $.

    so IAE.TO was sold for

    5) VRO.TO sold all its NATURAL GAS assets (7000 boepd) for 209 M $.

    VRO.TO sold PURE NATURAL GAS assets (0% OIL) at 30,000 $ per boepd.

    6) DAY.TO with 67% natural gas and 33% oil mix company was sold for 2,1 billion $ plus debt= 2,9 billion $ total few months ago.

    DAY.TO had a 37,000 boepd production.

    so DAY.TO was sold for almost 60,000 $ per boepd plus debt.

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    • I agree with Adam, those were NG and heavy oil production with limited reserve life; our crown jewels are the Viking, Cardium and Mississippian those are pure crude or very high crude, meanwhile the Hunton is 44% liquids, all of those assets have at least 8 years of drilling ahead of them.


    • That's a good question dorm; our water disposal system certainly helps improve well economics in the Mississippian as shown in the Mississippian deal signed with Atlas, unfortunately I don't have an exact value, but this is yet another example of the company extensive asset base.

      Indeed management have not shown much vision in guiding this company forward, I am hopeful our pressure campaign will help in steering them in the right direction, but so far we have had limited progress, by all means I am giving them until May 11th before more serious measures are considered.


    • Uh... that's not exactly a fair comparison Those were for light and heavy oil, I believe, not 50% dry gas.

    • goldstein, u say the same thing with me now.

      nawar, thank you for your posts here. Great analysis. Yes France has cheap wine and the countryside is even better than the expensive Paris. Excuse also my english.

    • Equal sold production in November and then again in January. Those comps are fresh. Apply them.
      1750 boe/d for C$40.3M
      350 boe/d for C$8.3M

    • Just to be clear, if EQU is sold for $40,000 per boepd, at 9500 boepd, then that corresponds to an Enterprise Value of $380M. After subtracting the $165M in debt, that comes out to an equity market cap of $215M, or $6.14 per share (not including recent Mississippian transaction).

    • to complete my post above about IAE.TO

      IAE.TO will be sold around 900 M $ actually according to the latests bids. Excluding its long term debt, IAE.TO was sold around 70,000 $ per boepd.