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Gold/Mining/Energy : ARAKIS: HIGH RISK OIL PLAY (AKSEF)
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To: richard hawkins who wrote (6094)6/13/1997 2:47:00 AM
From: Razorbak   of 9164
 
richard: <<This company CS Resources is producing 3000 bbo/day and Gulf Canada is willing to offer $14.25 for each of its (approx) 29 million shares. What are their PPP reserves?>>

I think the 3,000 bbls/day only takes into account their Pelican Lake production.

FYI, here is a direct link to their 1996 financials:

cdn-news.com

Summarized below are the relevant numbers from this document, allocated on a pro rata basis assuming the current number of shares outstanding. Below these figures are the trading multiples implied by the proposed offer, followed by implied valuations for Arakis assuming the same multiples as the pending transaction.

Current Offer: C$413 million; C$14.25/share

Shares Outstanding: Today - 28.98 million; EOY96 - 24.09 million

Book Value (Equity): C$176.6 million; C$6.09/share
~ P/BV Multiple: 2.34 X Book Value
~ Implied Valuation for Arakis: 2.34 X 185.1 / 88 = US$4.92/share

P+P reserves: 93 MMBOE [85.4 MMbbls + (43.6 Bcf/6)]
~ P/Bbl Multiple: 4.44 X P+P Reserves
~ Implied Valuation for Arakis: 4.44 X [(262 + 155.8)/4] / 88 = US$5.27/share

Cash Flow from Operations (CFFO): C$47.2 million; C$1.63/share
~ P/CF Multiple: 8.75 X Cash Flow from Operations
~ Implied Valuation for Arakis: N/A (negative at present)
~ Implied Valuation in 1999 with US$2/share CFFO: 8.75 X 2 = US$17.50/share

Razor

And that day dawned when Arrakis lay at the hub of the universe with the wheel poised to spin.

from "Arrakis Awakening" by the Princess Irulan
Dune 447
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