re: information needed IanIf, as per your hypothesised farm-in,...

re: information needed Ian

If, as per your hypothesised farm-in, BG are prepared to spend $100million (your numbers) to attain say 70% of the permit, then wouldnt that by extension value the remaining 25% of the permit at somewhere near $40 million??

I realise this is not perhaps the cleanest way of valuing a permit, and also BG could opt out after $10million, and at any step thereafter, but what other way do you have of putting a value on the permit?

How have you come to the conclusion KAR is overvalued?

Why would you think BG is prepared to spend $100 million if there are only "leads"? They must be pretty freakin good leads.......

I think this type of deal, if shown to be true, must only show that the permit holds a great deal more promise than what you personally have assumed.

Personally I dont really know if they are under or overvalued, but I also think your view at this time may be uninformed, as is everyone elses.

I week ago I thought KAR may be all hype. But if they pull off a deal with BG of this size, then I can only conclude something significant is showing up in those permits.

acturtle