BQI... I love the action, but it is the same kind of thing that happened with DWOG a while back. Notice the similarity to the method of valuation in these two statements. If BQI is for real, then just maybe DWOG's valuation by the same method really is closer to $16, instead of the .60 cents where it is today after having traded up to $2.50 a year ago.
This is not an endorsement of DWOG, nor an attack on BQI. Just an observation of how similar the messages below are.
DWOG..."Compared to Shell's BlackRock takeover bid of $2.20/barrel for estimated reserves, Deep Well is massively undervalued as the company currently trades at only $0.21/barrel for estimated reserves. Deep Well's reserves today could be valued at US$1.75 per barrel, which would be $13.20 per share, as its project is less developed than BlackRock's," said Schlotter. "In addition, it is expected that the SEC will soon rule whether Alberta's oil sands can be included in company reserves for reporting purposes. A positive ruling, which is expected, will open the door to one of the largest-scale competitions for energy resources ever seen as big oil companies rush to enter the oil sands business. Both of the above factors make DWOG a prime acquisition target, sometime that would be very lucrative for shareholders."
Message 22503809
BQI.."...On a fully-diluted basis the company has currently 250 million shares, of which management owns 19%. If we take the acquisition price of the former privately held North American Oil Sands Company paid by Statoil on April 27th this year at $0.91 per barrel recoverable reserves and apply it to BQI's 10 billion of estimated reserves (assuming 50% is recoverable), we get an estimated market value of $4.55 billion for Oilsands Quest, or $18 per fully-diluted share. Beside the favorable valuation the company has top notch management with a track record of building an oilsands company (CEO, Chris Hopkins founded Synenco [TSX: SYN]).
energy.seekingalpha.com
Of couse, we could compare either of them to UPL, and imagine that we have a baby UPL in the early stages... and then the price rise would just be starting.
I guess the bottom line is, I don't know enough to differentiate the DWOGs and BQIs from an early UPL.
finance.yahoo.com
We will need more oil though, from any and every source, so I will hold both DWOG and BQI and see what develops..
Sober |
