The share is trading between 70 and 80 cents and the NAV per share is C$3.27. Insiders own 29% of outstanding shares and they seem to have bought some more recently.
Current valuation
- EV/Reserves is $8.29 per boe.
- The reserves are 90% natural gas and 70% proved.
- EV/ production is $27 407 per flowing boe.
The final catalyst for the purchase decision were the results of the Wednesday's PNG auction.(the lower picture is from this GSY presentation)
What ever the buyer of those parcels expects to find may not be on Argosy's acreage, but there would seem to be good chance that it is. The map above doesn't show GSY's full acreage in the area, just the rights related to the Barrons trend. There is another map in the linked presentation that shows all the acreage.
UPDATED 24.07.2010
UPDATED 25.07.2010
Some of the rights sold on Wednesday are not next to GSY's acreage, they are actually below it. It appears that none of the deep rights on the Exxon farm-in land were auctioned.
9 comments:
Im amazed about gsy, how on earth you find these! (Btw there were some minor news from cne today)
I saw this article(http://www.calgaryherald.com/business/Lethbridge+area+play+dominates+latest+Alberta+drilling+rights+sale/3306590/story.html) after which I took a peek at the results of the sale, then I look at the high priced area through the rigscout and there was some GSY activity nearby.
CNE: As I wrote last week: the King of mistiming. The remaining CNE position is up 55%, which isn't too bad.
RH-6 well looks very promising.
Nordegg: Galleon made a brief reference to Nordegg in yesterday's release:
"To adopt a strategy of farming out lands some of which are prospective for emerging resource plays, including those in the Nordegg, Duvernay and Slave Point".
You probably know this: Fairborne tried to produce gas from Nordegg in the Harlech area, but the results were quite poor. The problem could have been the reservoir in that area or the chosen frac technique.
Nordegg has difficult geology but with proper fracking it could be economic. I waited hz well results but then came reserve update, with promising well results ACG still has lots of upside potential. Recaps are good way to make money nowadays. Yep i owned FEL some time but sold off last month. FEL drilled vertical wells at Harlech, or am i missing something? In many areas there is significant improvement when drilling hz well compared to vertical.
Oh you meant over 2 year ago drilled hz well at harlech, fracking techniques have improved a lot after that.
To be precise it was a resource update.
The comparison between Nordegg and established resource plays on page 37 looks interesting, but one has to wonder if the reservoir quality is that good why hasn't anyone tested the play before, after all the play is located in the heart of the Canadian oil patch and all the data used in the resource study have been in the public domain. The study does mention that there seems to be disparity between log and core data and the study is mostly based on logs.
Previous Nordegg production has been incidental.
As for Harlech: Based on the AJM study it seems that the geology of the play is very different down South and the thermal maturity of the zone differs significantly from the North.
ye i wrote tired as hell. ACG trying acid like scs in pekisko, it could be way to crack nordegg potential.
Fairborne used slickwater fracs in Harlech, which is odd considering that Nordegg is a sandstone-carbonate reservoir. Then again what do I know.
I think acg needs to use different type of acids to succeed because its mixed shale reservoir of sandstone, carbonates(limestone,dolomite). It will be difficult frac treatment. Previous acid frac results are promising in samekind reservoir but i dont have any clue how these work in nordegg reservoir structure.
I wonder why resource report came before well results. It doesnt explain such strong price runup, me thinks. Can someone help me?
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