Hi
@cmonaussieI think you are comparing SEA
proved P10 value to Lone
proved and probable value.
(Table 4 is proved and probable, Table 7 is proved)
Below are the comparisons of
proved PV10 at SEC and flat deck $55
SEA
• SEC 93.2MMboe $1110M
• 91.3MMboe or $781M ($55WTI, $3.50mmbtu)
• Debt $365M (Sep-19)
• 6.9 m shares
LONE
• SEC 93.3MMboe $1118M
• 92MMboe or $920M ($55WTI, $3.50mmbtu)
• Debt $500M (Sep-19)
• 40m shares
• $2.35 share price
Lone has a current EV of $2.35 x 40m + $500M
=US$594M
So given SEA has comparable SEC proved reserves and PV10 it should also have the same EV
US$594M less $365 debt = $229M / 7
=US$32 share price
This is how and why I think LONE's existing share price values SEA at US$32!!
(At flat deck, SEA has a lower PV10, but as WTI approaches the SEC price deck, the PV10s converge and would expect to see SEA catch up)...
