$EEENF Here is my re-calculation on the valuation of 88E using Peregrine+Umiat, as this is now the priority. The Net Mean for Merlin-1 is currently 645Mils bbl, including Harrier and Harrier Deep equates to 1.636Bils bbl. The Umiat acquisition provides an additional 2P reserve of 94Mils bbl and access point to the Alaskan pipeline for Peregrine. 1.73Bils barrels of prospective oil at Peregrine (good confidence) where 88E now has a 100% WI and is required to pay 16% royalties to Alaska. Assume a contracted oil price of $5.00/bbl at $65 market crude. Further assume 5yrs for infrastructure (site prep/access, pipeline), 20yrs production and a 10% discount factor and 13.7Bils shares. Excluding performance/royalties to APDC, this equates to a stock price of $0.07 (4X). In fact-this deal is a net benefit to 88E, as the increased working interest more than offsets share dilution and royalties to APDC and provides 88E greater latitude to negotiate the property.
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