elk valuation

With all the crazy talk and valuations being given to to other companies in the sector despite them having no sales, minimal oil production, or having not drilled any wells, it would be nice to think that Elk would see a revalaution of its share price when the G Filed project is finally announced.

So what kind of valuation should one put on ELK?

Well we 'known' that G has about 20 million barrels of oil at 3P and Elk should get at least what other companies are valued at.

Using AUT and its market cap of $1.25 billion and 84 million barrels of 3P (which incidently includes NG and is based on an 80 acre well spacing............) that gives a market cap of about $15 per barrel.

So that should give Elk a market cap of $300 million. IMO ELK is better positioned that AUT as that company has to drill upmteen wells and use huge amounts of capital to ever get that 3P oil converted to 2P or 1P.

SO IMO ELK should be given a premium to AUT as a result of the 100% oil and reduced need for capital. Maybe another 20% or so.

But let's go wild like that those other companies and give the field a gross value of $1.8 billion and a NPV of $1 billion as a result of the early production profile. That would value Elk at $10 a share or so.

Hey that's a 30 bagger................