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Wales Walker

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Wales Walker

Re: hillzman post# 5652

Friday, 02/23/2007 3:10:37 PM

Friday, February 23, 2007 3:10:37 PM

Post# of 51429
One possible valuation scenario. Today we learned Hemi has 2+ mil. proven and 5+ mil. probable bbl in that field alone. A reasonable assumption is that half of the 5 mil. probables pan out, for a total oil reserve there of 4.5 mil. bbl. Let's assume then that the market will award half of market price for proven domestic reserves, or $30/bbl. Now if we assume at least that much oil from all of Hemi's other holdings, a 10 mil.bbl reserve makes sense. And 10 mil. x $30 = a market cap for the stock of $300,000,000. Divide by 40 mil. shs O/S, and you get a price of $7.50 per share. You could cut my numbers in half, and still justify a price of $3.75 per share. And Hemi is overpriced? LOL
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