Chedderville is Yangarra's core area where the majority of the corporate value (NAV10(1P) = $10.66/sh) is concentrated and more than 200 (2 mile) drilling locations could effectively double that value (NAV10(2P)) at today's oil/gas prices without increasing debt or shares issued. In effect, YGR.TO is significantly mispriced in the market and is a very lucrative target for a takeover. Any oilco with activity in the area and available cash could acquire YGR at a large premium to today's share price and it would still be accretive to their balance sheet. The high (15%) insider ownership and the extraordinarily low P/E and P/CF would dictate an offering price much higher than the current sp. Prime candidates for the acquisition of YGR are $WCP.CA & $CNQ. Both have excess cash flow and are active in the area. $BNP.CA there and the acquisition of YGR would have a significant impact on their corporate value but they have high debt already.
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