eagle ford acreage worth $600 million

i dont hold but ive been looking at azz share price go from 5 cents to 50 cents and im trying to find some undervalued oil companies similar to azz based in the USA. sea definetly fits that bill.

azz are being paid $250 million US dollars for 21000 acres. prices paid per acre from azz's latest quarterly suggest $35,000/acre in azz's permit area with production facilities.

from azz quarterly

Linn Energy announced in early July 2015 a sale of their NW Howard County assets (Spraberry and Wolfcamp A/B benches) for $281 MM to an undisclosed buyer involving 6,400 net acres and 2,000 BOEPD from vertical wells only. This implies an undeveloped horizontal value of approximately $28,000/acre or a similar $35,000/acre valuation with production as in the Diamondback transaction (See Figure 1). Industry watcher Tudor Pickering Holt stated the following on the above transactions as further corroboration -“LINE announced yesterday the sale of its remaining assets in Howard Co. (6.4k net acres, 2mboepd) for $281mm. Assuming $50k/boepd for PDP, implied undeveloped value is ~$28k/acre, in-line with $25-30k/acre metrics printed in the Midland basin in past 18 months.

move on to sea they have approx 35,00 acres in eagle ford which is the premier basin in the USA.

if we use azz as a guide then sea's acreage is worth nearly $400 million US dollars.

i wonder who is also looking at sea's assett's now. if azz can go from 5 cents to 50 cents then sea is dirt cheap at 24 cents and certainly must be a takeover target. good luck punters i suspect there will be a scramble for shares tomorrow morning based on whats happening at azz.

frosty