My prediction of a takeover by POE on CVN is based purely on the disproportionate share price between POE and CVN for their % of production. POE at last nights close of $13.80CAD equates to $623 million CAD which at today's exchange rates convertes to $675 million AUD. Based on POE having 50% more of the production than CVN (POE 6000 bopd and CVN 4000 bopd) then if we divide POE's $675 million AUD market cap by 1.5 ( which represents POE's 50% greater production) this equates to CVN having a market cap of $450 million AUD. At today's close of 46 cents CVN's market cap equates to about $305 million AUD. This represents about $145 million difference in market cap between CVN and POE for there different share of production or approximately 22 cents a share for CVN. Now I don't think that POE's other projects are worth $145 million AUD and this gives no value for CVN's other projects in the pipeline. These are just back of the envelope numbers and does not take into account POE or CVN options. Ted and co currently in Thailand doing a field trip I was told by the receptionist. Maybe negotiations are already begining. One thing is for sure CVN's market cap compared to POE is pathetic to say the least.
CVN Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
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