Free- I thought I had better tidy up my rather rushed effort, from earlier today.
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KKO
Shallow drilling into what is soon hoping to be a huge 15,000 sq km (3.7 million acre) area of gassy coal targets.
KKO have about $4.5 million cash as of last quarterly
At 25 cents the market cap of KKO is about $31,000,000 (many shares are in escrow)
The EV is therefore currently about $27,000,000.
The company holds 49% share in the project... the equivalent of 1.85 acres
Therefore the market is pricing KKO at $17 per acre. Yes its not oil country... but as a very rough comparison... Monterey shale is pulling prices up the $1000 per acre.
Flares lit at many of the KKO wells.... gassy coal samples frequent.... all pointing to substantial estimates.
2 rigs coring.... 1 rig prepping test wells.
MD hinted at P1 estimates being released relatively soon... let alone P2 and P3 estimates.
South Africa hungry for local gas.
Infrastructure nearby to get gas to market (2014 target)
Reserve estimates should be a kicker soonish... if not that.. then the buying in anticipation of them.
Initial IPO was oversubscribed at 20 cents... even raised a few months ago at 18 cents, in amongst tough global times. Price has held up well over the course of 2012.
As a 51% share of project is with a local crew... the sovereign risks minimised due to structure and JV partner.
No mention of fraccing.... limiting environmental risks... halts due to valid protests.
KKO will be getting data from leases... effectively for free. Nice headstart.
