Axis Energy Corp (AXGC)

[McBeanburger]

i asked someone how to evaluate a company with oil flowig from the property. for example vnx who have 5k bpd flowing

he said:

If you're looking at a potential take-out valuation you could probably use $70-75,000 per flowing barrel, but IMO that's at the top end -- and don't expect the stock to trade at that level in the absence of an offer for the shares. You would also need to knock that $70-75K metric down if the operating costs are above average.

And don't forget to subtract any debt from the gross enterprise value before dividing by the o/s shares, and also remember to increase the o/s share number to account for any convertibles or options in getting to a FD o/s figure.

I usually ignore the value of seismic and undeveloped land unless for some reason they are particularly large or significant, e.g. as in the old Pan-Canadian Pete which had land up the ying-yang