What is CELS Karoo asset worth ? This is a complex question as each shale deal hingers on its own peculiarities.In CEL'S favour is the fact a well has already flowed significant gas on their acreage , Gas prices in South Arica are high and electricity faces acute shortages.Their tenement is also in the sweet spot of the Karoo basin.
A look at Falcon Oil and Gas(who have farmed out to Chevron) Dec presentaion may offer a clue , it offers the following value for undeveloped shale gas plays:
Undeveloped
•Logs, seismic
•Oil and gas shows
•Tests
$50 – 1,000/ acre
•Americas Petrogas / Exxon (Argentina)
•Drillsearch / BG Group (Australia)
•Lane / Conoco (Poland)
•Lierle Leasing Report (U.S.)
•Beach / Adelaide Energy (Cooper Basin)
Taking a line through that- Cel has 1 million acres, thus their valuation could be anything from $50 million to $1 billion !
Cels present market cap is approximately $33 million.
cel - valuation
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