Hello, and Greetings!
Perhaps you are here because of the horrible quality management at IV, as their 'service' has been down for several hours.
Let me start out my saying that the Canadian Superior Business Plan has been proceeding exactly as planned. The company is busily drilling the 3rd well at a fast pace, and I would think we can all assume that commercial amounts of gas will be found at Endeavour, as it is only a couple of miles away from the 2.6 TCF Bounty well.
In this environment where Cash is King, Canadian Superior is quite fortunate to be able to get 45% interest and only pay 26.67% of the cost on the Intrepid block.
We will soon drill for oil on the MG block which will give us large immediate sums of cash to help us take on larger cash intensive projects, such as the 550 million Liberty project, where Canadian Superior will acquire complete Vertical Integration regarding the production->marketing of the gas, cash might also be used for a 550 million production platform on the Intrepid block (or just use LNG tankers?). That cash can and has been used for NPV analyses which will allow the company to execute their business plan in a serendipitous fashion.
Canadian Superior will soon be drilling for MASSIVE amounts of oil and gas in the Mediterranean sea with Joint Oil (govt. owned), as they recently have agreed to drill on the November 7 block which is partly owned by Libya & Tunisia. This is a text book example of sustained competitive alliance due to hard-to-imitate strategic alliance with counties that have TONS of oil & gas. The strategic alliance with BG is also wonderful.
I can tell you beyond a shadow of a doubt that there will soon be a floor set on the price of SNG, as reserve amounts do have a VALUE, e.g. 4TCF, 45% -> 1.8TCF, less 50% to govt. = .9TCF net to SNG times .50mcf!? lol, whatever!!!! = 450 million market cap + easily 200 million market cap for W.C., MG, L/T = 650 million market cap at the VERY, VERY bottom...however we are as of today at 467 million market cap, LOL......here are some calculations Mr. ValueSleuth has performed:
“3.7 TCF (~3P?)
per TCF SNG CHQ
$ .50: $3.33 $3.41
$ .75 $4.44 $5.11
$1.00: $5.56 $6.81
$1.50: $7.79 $10.22
$2.00: $10.03 $13.63
$2.50: $12.26 $17.04
$3.00: $14.50 $20.44
Comments:
Under the most conservative of assumptions that I've used, the share prices do not reflect the most likely in-place reserve values -- i.e. the stocks are CHEAP, CHEAP, CHEAP, if the reserves are there and are worth anything close to what BG is bidding for Origin Energy's reserves in Australia and other alleged pending deals for in-place reserves -- or the $1.65/mcf mentioned by CEO Phil Mulacek in the 2Q08 IOC CC for 3P reserves."
When it’s all said and done, I think under the worst case scenario, a la the ‘sky is falling’, Canadian Superior is worth easily $10 per share for everything, as we have seen how much the T’n’T reserves that EOG has are going for. Also, the intangible assets of management (C. McK. former leader of T'n'T managment for BG) that cansup has, has not been accounted for on the balance sheet. I could go on……if you have any questions, feel free to ask.
Godspeed, The Great Dane
