Morning all,Good coverage today in the press. Thought I'd...

Morning all,

Good coverage today in the press. Thought I'd quickly summerise some potential value estimations identified by the HC crowd with some press support.

Londoner was kind enough to do a market comparison vaulation based on what Tailsman has paid for Rift Oil and Horizen. It places NGE at a $280m market cap based on our JV farmout and new ownership %s across the licences. So the oil experts think we are worth about 57 cents a share based on potential of permits. That would be on a straight sale basis so I would go further to say that for an NGE holder that has just agreed to the JV deal, it now gives us an avenue to progress 3 permits which will further de risk NGE and immediately represent a higher value then 0.57 given we now have the $ to become more then 6 prospects.

IT was good to read articles being posted, expecially the one that said 'Both (NGE and HZN) have signed big spending farm-in agreements in which the Canadians will pick up the running to find about 5 trillion cubic feet of gas'.
Assuming this is 50/50 (based on the $ paid) it would indicate that the 2 leases we have farmed out have the prospect of 2.5 TCF. This doesn't even include our oil seep permit or the other 3. Based on my previous post it would indicate that we are looking at up $8 worth of SP value should all go according to plan with the 2 Tailsman permits alone.

So in short, 0.57 is a base case valuation Tailsman would have attached to NGE for an unfunded 6 permit prospect. Now the JV is secured we are further derisked and will continue to do so at each major announcement of Gov approval, drilling time table, equipment secured, equipment onsite, dilling results, etc. Obviously the first proven finding will have a significant impact but up until there are many announcements that will continue to improve our risk profile.

The share price will continue to go up and down but IMO it will keep heading up to an efficient value for where we are at.