The statement was made 'This company is asking WAY too much for their Productions' by ardvark11. I am asking when did the company make it public what they want for the company?
Everyone is so focused on production to value the company. We are selling our assets; our land and land rights, our mineral rights, our pipe line and storage, our reservoir, our reserve. What is our land and land rights worth? What are the mineral rights worth? What is our pipeline worth? What is our storage worth? What is our reserve worth? What are the people that work for the company worth? Production = cash flow. That is just a very small part of the value and what is our production worth? If 2 pumps are producing 30 bbl but pump 1 has been running for a year and pump 2 has been running for 2 months - are they worth the same; they are producing the same amount yet one has been running for much longer.
A company that is producing 300 bbl can be worth more than an company that is producing 3000 bbl if its assets are worth more. How do you value lot A over lot B? How do you confirm what is in the ground and value that? What is a million barrels of crude worth in the ground? Is the land in Saskatchewan worth the same as Alberta? Alberta oil is deeper but there is better production. Saskatchewan oil is better but has less pressure so even though the wells are cheaper to drill more work is needed to get the oil out.
The company had to bring someone it to help with that. Has he come up with a value? Has he finished what he was hired for? - nobody knows anything because the company has not released any information.
Just because some other company got $100.00 per barrel of production doesn't mean that we will. What asset were there. WE ARE SELLING ASSETS - NOT PRODUCTION. YOU SELL PRODUCTION WHEN YOU WANT TO HEDGE.
When a company buys land rights they don't know what there is. They do the seismic testing and if they find oil is the land worth the same as they paid for it - no. So what is it worth now? This is called exploration and that is what we pay the big boys in the office to do, and so far they do it well. Why do think the reserve probable and proven mean so much? This is what the company is worth. Production number are income to service the debit and do more exploration.
Some people here what to make a valuation by pulling numbers out of the blue with no knowledge or facts to back them up. I asked a question if a value has been release that I may have missed. Production numbers don't matter - assets do. Do we have an asset value?
The asset value can be worth $1.15, $1.50 or $5.50 per share. We don't know what the assets are worth and an independant reprot for probable and proven has not been release. After e-mailing the company about the date of Q4 results they say end of April some time but will not comment on the sale or reserves.
This is what has p*ssed off some of the old timers here that the newbies don't know what they are talking about and yet make fantasy comments about this company with no facts to back it up. Just because you may want $2.00 per share doesn't mean NVS is worth that. It could be worth $0.75 per share. Does Bre X mean anything to anyone? WHAT IS THE VALUATION BASED ON ASSET OF THE COMPANY WORTH?