As a holder of Senex shares I came across Planet Gas recently and immediately got excited. I got excited because there are not many juniors left in the Copper Basin and even less that have 3D seismic over their tenements, are fully funded and have drilling in 2013.
PGS has it all.
Current market cap: $11m Cash in the bank: $5m EV: $6m
So what do you get for a ridiculous $6m EV?
- 20% of prime copper basin oil acreage - Cordillo 3D seismic - Dundinna 3D seismic - 2 confirmed wells paid for by Senex by November 2013 - A further free carry by Senex of a further $45m (PGS share $9m) - Low cash burn - Well head royalty capped at $7.5m (2% at the well head) - Possible cash bonus of $5m for certification of 8mbbls oil and $5m for an additional 4mbbls
Worth a look in my view - I've been buying.
Cheers
PGS Price at posting:
2.0¢ Sentiment: LT Buy Disclosure: Held
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