yipeee , page-9

Tillydog,

The internal valuation was over $5 before they got their hands on Blue Bonnet based on gas production - which has seasonal downside in the summer. Now that it appears that the production is mostly condensate / oil, the valuation in my opinion is far more solid as the oil price currently more stable than gas and is going to rise - to $100 in the next 18 months. Gas varies from $5.50 down to $3.50/mmscf and is therefore less reliable for cash flow and valuation.

Suggest you look at the ODAC website to see that there will be another oil crunch before 2015. So by the time AZZ are at peak production (say 2013 - 2015)the oil price will be much higher. This is a big oil play for a cheap price. I know - I've been buying since 6.5 cents and been following the stock for almost 4 years!!! Being in the business, I know a good thing when I see it!!! One of my work associates from Texas loves it! Cheapest entry into a big oilfield. If it were a US listed company it would be valued a lot higher. Brokers here just don't understand because it's over there!

Patterson's valuation is $1.03 accounts for a 20% success rate with a placement of 100M shares. They have only placed 30M or so. All wells in the Eagle Ford have been put on production. So $5 is not unreasonable in 18 months to 2 yrs. It's definitely worth the wait! It's still a seven-bagger from here. One other poster put a figure of $2.78 on it (a broker I assume, and therefore conservative). Should they pick up more ground, the value should rise proportionally. If oil hits $100/bbl - well, you can just guess where that will send the price. It's already at $80 as forecast over a month ago by some prophets in the know.