I'm fine with disagreement there NB. GGP isn't the only company whose share price trades at a large discount to its NAV.
I still don't understand the response - point 4. Again probably immaterial - all wells in PB/EFS are fracced. FP, Bowtie are not.
Important though - ee did not borrow from HAL to frack our wells. We just did not pay HAL and had to go onto some kind of extended payment term. Don't forget these vendors now hold liens on our wells.
Its $1.6M (or so) on EPT for which HAL is $900K. So its a least 8 months at $200k/mth per ChrisR.
We have PB acreage that is PUD - those are the acres that are HBP - don't see any value (other diversification if we were bigger) in pursuing another property. It is the legals that remain as the biggest impediment.
The lease situation is fully described:
Lease 771 - 2,531 acres - this is lease where we have our HBP acreage (1040-ish acres I believe) and where our CDP would allow us to continue drilling. This lease also has PROVEN RESERVES - so PD and PUD worth $7.18M and $38.59M on PV10 Basis (to I presume 100% NRI - so take 72% of that).
Lease 772 - also approx 2,500 acres - IMO this lease while still available, we don't really have any option to keep it.
There is value here - even if only the HBP acres.
BTW, I did actually say this at AGM to chargrin of some that IMO the vertical wells were performing at below the type curve for those wells. Some discussion around the intervals fracced etc. I stand by that comment still.
GGP Price at posting:
2.5¢ Sentiment: None Disclosure: Held
