20/11. Devon Energy paid US$6B TO Geosouthern Energy for 82000 acres producing 53000 boepd in Eagle Ford. The price to revenue is a multiple of 4,eg 53000boepd =US$1.5B revenue x 4 = US$6Billion. This deal was regarded as an extremely good deal for Devon by the USA energy analysts. SEA 2014 4th quarter should be produing 9000 boepd which would convert to US$300million and using the same valuation as the Devon transaction would give SEA a value of US$1.2 Billion.
SEA Price at posting:
$1.01 Sentiment: None Disclosure: Held
