The valuation on CHK would have to be done at the point the 80% spend was completed and that was before HWD004 was finished IMO
Then take away CHK cash
Do an NPV on Pyramid Lake
Then work out how much CLE are prepared to pay to rescue the stranded resource at Wee Mac with their tech - and bear in mind they probably can't come out of suspension until they get it.
If you do all that I would only pay $5m max in equity for their 20% imo.
CHK have all the good cards here IMO.
CHK Price at posting:
4.2¢ Sentiment: None Disclosure: Held
