re: Ann: Molopo Completes Sale of Spearfish O...
Back of the envelope-
Queensland $40m, may be a little high due to increasing resistnce by farmers to LNG projects, plus very high costs of drilling multi laterals and ongoing production shutdowns where wells need frequent workovers.
SA- $3m with growth potential
Canada Gas $10m, potential to increase if drilling is succesful.
Bakken and American Oil asetts say $5m
Sperfish sale $92m cash plus allow $70m for shares in Legacy. I realise they are worth more than that at present but in 6 months time when the shares are saleable the problems in Africa are likely to have settled, and the oil price may drop accordingly. May be wrong, but would you price in more?
Cash at hand say $20m
Total is $40m+$3m+$10m +92m +$70m +20m = $235m
Present market capitalisation $252m allows some leeway.
MPO is certainly not undervalued at present.
MPO Price at posting:
$1.00 Sentiment: Hold Disclosure: Not Held
