quebec missed boat on shale gas, page-4

I wonder where the $500m figure came from. The article says Macuarie Equities Repott, but if you look at their 10th Sept 2010 valuation (below) they certainly dont give it anywhere near this vauation. so perhaps the figure was simply made up for political reasons.

"Recent farm-out deals in the area have priced prospective acreage greater than C$250 per acre (albeit including drilling commitments), which potentially implies ~C$100m of value for MPO‟s prospective acreage."

A big difference.

Of course this was before the 2 year stoppage was put in place and we can expect valuations to have substantially diminished.

Of course it a HUGE assumption on Macquarie Equities to place similar valuations on MPOs acreage as "recent farm out deals" ....we dont know where these area are or anthing about how MPOs acreage compares.

Dont hold out for $500m, listen to the market, its telling you a more realistic figure.