Bought: 200 at C$ 2.31 on January 13, 2010 (Brent at USD$ 80.32)
Target: C$ 4.80
UTS, based on Cash + Earn-ins + Developments at cost = C$ 3.40
UTS’ Cash & Remaining Earn-ins = C$ 2.40
EV, based on recent transactions = C$ 4.80
(at least C$ 0.63 / recoverable barrel)
See Jan 2010 presentation
Check daily oil prices:
(Clicks "Spot prices" and then "Download Series History")
From Grant's:
...Total E&P Canada launched unsolicited bid for UTS earlier in 2009. UTS board presented six comparable transactions that had occurred between 2005 and 2008 at prices ranging between C$0.47 and C$1.62 of enterprise value per barrel of recoverable resource. Total’s bid, said the board, represented C$0.18 of enterprise value per barrel excluding UTS’ remaining earn-in. Including that earn-in, the value of the Total bid was minus C$0.25 per barrel. On September 1, PetroChina invested C$1.9 billion in Athabasca Oil Sands Corp. for a 60% stake in Athabasca’s Dover and MacKay river projects. The price was equivalent to 63 Canadian cents per barrel. On September 10, the FT reported that China National Petroleum, the parent of PetroChina, had increased its acquisitions war chest with a $30 billion loan from a state-owned bank. “Using PetroChina’s price per barrel of 63 cents would value UTS’ best reserves at C$1.47 billion (0.63*2,334 million barrels),” Gertner points out. “Add C$255 million in cash and C$700 million remaining on the aforementioned earn-in and subtract total liabilities of C$111 million. By this method, UTS would have a value of C$2.3 billion, or C$4.88 a share.”
