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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Madharry who wrote (41104)	1/19/2011 4:42:41 PM
From: Paul Senior	Read Replies (2) \| Respond to of 78669

Madharry, regarding these e&p's, I haven't kept records of land prices paid vs current market values. Lots of variables affecting land prices that I can't quantify -- availability of required resources such as water, roads, pipelines; winter harshness considerations; business model -- ratio of gas:oil; heavy vs. light/medium oils; multiple shale locations. Comparing what adjacent companies paid for their drilling rights -- even if they bought at the same time -- that is maybe only indicative. Looking at market value of acreage owned, I only have info for the Alberta Cardium. Here are some results I've calculated: Message 27101331 I've mentioned TriOil Resources (TOL.v/TRIAF) now. It has your "low market price to acreage owned" -- as measured by enterprise value to net-sections controlled. Company agrees: this can be seen in a comparables chart in their latest corporate presentation. As I say, I'm betting on development success of the Alberta Cardium and buying TOL.v as one stock that gets a stock buyer land relatively cheaply compared to other companies' land there. The Alberta Cardium's pretty broad -- maybe TriOil's in an area that won't be commercially productive. OTOH, TRO has enough drilling prospects that maybe a couple could hit to make up for the dry holes.