If they find the anticipated 64BCF, valuation becomes $1.00. Valuation on MOG becomes $3.00. MOG has the best leverage, but BAS has cash for two more wells and lots of evaluation of data. Things are pretty quite with MOG trades, and HotCopper posts, probably due to nerves as MOG uses up $3.7m of its $5m in doing this one well.
However, MOG can spend remaining $1m to buy rights to 10% of BAS's next well. I believe MOG also has a 10% right to a BHP well to be drilled before next May. MOG's leverage to the BHP well is 10 fold (ie $2).
I hold both MOG & BAS.
Here's hoping for good drill results.
Regards,
TDF
BAS Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
