RBC has a target price of $ 3.25

 

Paradigm's target price is $ 3.60

 

They used $ 8 million for the land package between Deventa and DonnyCreek.  That is around $ 0.20 cents per share fully dilluted.  So they value Kakwa all by itself at something over $ 3 bucks.  Well # 3 will hopefully raise that number by about $ 0.50 cents.

 

Haywood's target is $ 7 bucks ( I think )  They have used some different metrics.  Turns out low though.

 

Schaefer sees $ 8.69 on land value alone using the metrics of the land deal with Perpetual and Tourmaline, buyer unknown but rumoured to be Sinopec.  This deal works out to be $ 3836 per acre.

 

Many think that is high and should not be used.  We have had a few land sales in the past couple of months.

 

Seven Generations ( Private ) bot 3 sections between Kakwa and Wapiti average price per acre $7000

 

The rest of these were purchased through Land companies.

Prowest..............over $ 21 K per acre, very close to Kakwa

O & G Resource Group...........over $ 7 k per acre, close to Wapit

O & G Resource Group  over $1500 per acre, right in the heart of Wapiti

 

Scott Land .........3 sections between Kakwa and Chicken avg.over $ 2400 per acre

 

Windfall.................2 sections between Kakwa & Chicken for over $ 6200 per acre

 

7 Generation ..............1 section between Nuvista and Wapiti, over $ 2500 per acre

 

The Soo Line.................1 sectiion between Sinopec and Wapiti, over $ 7800 per acre.

 

Donnycreek has in excess of 100,000 acres.  The Perpetual / Tourmaline deal on a little over 40,000 acres is values at $ 175,000,000 for raw land.

 

Kakwas acerage ( 10,240 ) is certainly valued at much higher numbers than any of the numbers above.

 

So using 90,000 acres of raw land one could use..........$2000 bucks per acre..........$180 million bucks

                                                                                           ........$3000 bucks per acre..........$270 million bucks

                                                                                           ........$5000 bucks per acre..........$450 million bucks

So...................3 dollars per share for Kakwa and growing, I think we can add $ 0.50 cents per share if the wells are similar to past wells.  As the total land package gets de-risked, and added to, it will increase the numbers significantly.

 

On the low end ( $ 2000 bucks per acre ) that is an additional $ 4 dollars per share.

 

I would expect an updated target price from the Investment industry as time goes by.  Hold on to your hats.

 

In the coming months news will be coming out on a regular basis.