$pqeff 1/6 Did some Sunday night NPV analysis based on Petroteq's latest reserve report

Dec 27, 2021 · 2:32 AM UTC

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2/6 For key assumptions, I took mgmt production guidance and net realized revenue from the company presentation and risked it. 5000 boepd by 2025 and net realized revenue of $20 per barrel $pqeff
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3/6 Assuming they produce till 2050 (the woke mob will probably phase out oil by then). The NPV of their reserves is $335 million at 15% discount rate. Capex of $100mm each for developing PR Springs and Asphalt Ridge plants as per mgmt $pqeff
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4/6 After $200mm in capex the NPV left is $135mm. See attached calcs. That gives us a per share value of $0.21 USD per share $pqeff
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5/6 In other words, the existing reserves and production plans for $pqeff doesn't justify a share price more than $0.20 - $0.30 cents as a standalone company. An acquiror with far more oil sands reserves and production can probably justify a higher offer price
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6/6 To me it is glaringly obvious that current offer on the table is far superior than what the company can achieve on a standalone basis. My conclusion is to take the offer and run! $pqeff All feedback is welcome! this is not investment advice!
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It sure did! I was expecting mgmt to cling on to their losing narrative. But they accepted the reality!