DD2's research indicates we are below book value. This is only based on the independent reserves report which is for the 5 contiguous leases in Woodson county ONLY and for only the PROVEN reserves.
Now, to further hammer home just how undervalued we currently are...
In addition to the ~2000 acres (which is more than 3 square miles) that makeup the 5 contiguous leases that have mature reworked wells in Woodson county, Hemi also has 1400 more acres adjacent to these 5 contiguous leases. Now, Hemi just announced today they are in the final phases of lease acquisitions which will more then double their footprint in Woodson County to ~7000 acres. The majority of these are also contiguous to the 5 leases the reserve report is for.
Based on the blanket formations in this area, it is likely IMO the recent acquisitions will have similar reserves. So, if JUST the 5 leases (~2000 acres) in Woodson county would have us valued over our current market cap, think just how undervalued we are (oil and gas production not even figured into this picture) if you extrapolate it out by using the numbers in the independent reserves report and multiplying it by 3.4! I get the 3.4 multiplier by taking ~2000 acres plus the 1400 acres then doubling that. 6800 total acres with the independent reserves report accounting for only ~2000. While this is currently not looked at as proven reserves, I think it'll only be a matter of time before they are. So, if we are below book value taking into account only the 5 contiguous leases it doesn't take a whole lot to figure out just how ludicrously undervalued we are if thinking about all the other leases next to this one. Now, factor in the BOE reserves in the leases in the other 5 states and where are you?
It is only a matter of time, people, before this is realized by a lot more than the handful who have done extensive DD and read this small message board.
