Let's do some math to estimate the value of CE1's proven oil reserves within the Brooks Project (these are my personal calculations. DYOR).
Above article shows:
CE1 Proven Reserves (1P) = 8 million barrels
Approximate Recent Oil Price = US $90.00 per barrel
Value of 1P Reserves = 8,000,000 barrels x US $90.00 per barrel
Value of CE1 1P Reserves = US $720,000,000 (US $720 million dollars).
This calculation only considers 1P Proven Reserves. As shown in above article, CE1 also have 2P reserves (proven and probable), which also should be considered.
Als of note about CE1:
- is currently undertaking a drilling campaign for 3 new wells.
- $7.5 million dollar capital return to shareholders is currently underway and due this month, equalling 1.2c returned per share held (approx 10% to 15% return on current share price.
- oil prices have been on a recent uptrend.
- management have recently been buying shares on-market.
- top50 share holders own ~63% of CE1.
- Auctus Advisors have a price target of $0.45c on CE1.
- Canadian oil & gas players have recently presented takeover bids for CE1, and more future bids are being speculated.
- stong news flow expected in the short/medium term as a result of the drilling campaign, the capital return, and the speculated takeover bids.
- Annual Revenue = AU ~ $98 million dollars.
- Current Market Cap = AU ~ $58 million dollars.
CE1 is significantly undervalued IMO. DYOR
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