Implied Valuation Metrics
EAGLEWOOD ENERGY INC.
PRL 28 volumes*
Total "in place" resources: 96.2 BCF gas 5.28 mmbbl condensate
Net to EWD: 38.5 BCF gas and 2.11mmbbls condensate
Typical "in the ground" metrics**:
gas ranges from $0.30 to $0.50/mcf
condensate range from $5.00 to $8.00/bbl
Implied value range is $22mm to $36mm, or $0.25 to $0.41/share
PPL 259 acreage
Horizon and Mega farmout terms require them to each pay
$15.2mm in cash and carry to earn 25%, or $600k per 1%.
Implied value of EWD's 40% is $24mm, or $0.27/share
Cash balance
-$6mm or $0.07/share after 2012 seismic and drilling costs
TOTAL IMPLIED VALUE: $0.60 to $0.75/share plus 2012 well result
*
Gaffney Cline Associates, March 2012
**
FirstEnergy Capital, Cormark Securities, Macquarie Equity Research, DNB Markets
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