Approximately $11 Million Canadian dollars is not a bad investment to pick up 55% of these blocks (assuming that the oil is there)... I don't understand why HENC is selling working interest at such a low cost... It appears to me that Terra Nova definitely has the better end of this deal & time will tell...
HENC will own 28% working interest.... Market Cap = $72 Million.... or $2.57 Million / 1% W.I.
TNVMF will own 55% working interest.... Market Cap = $8.8 Million.... or $0.16 Million / 1% W.I.
Hmmm... Looks to me like TNVMF offers a HUGE discount into this play when compared to HENC... Right now HENC is 1600% more costly on a per working interest basis...
If TNVMF should triple their share count, then their stock will still represent $0.48 Million / 1% W.I., Making HENC only 535% more costly than TNVMF shares on a per working interest basis.
The Bottom line is that fully diluted (3x share count), TNVMF offer much more Working Interest per invested dollar. In fact, even if TNVMF's share count is tripled, they still offer a route into this play that is only 20% the cost of HENC shares...
Anyone who wants a piece of this play is paying 535% more for get in through HENC than they would be if they bought TNVMF.
NOTE: all calculations made using the closing price from the 22 July 2013
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