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Author: Gordogato Big red star, 1000 posts Old School Fool Ticker Guide Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 30  
Subject: Undervalued based on value of proven reserves Date: 3/3/2011 1:16 PM
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In this Seeking Alpha article, the author suggests that Petrohawk is currently undervalued, based on the value of its proven reserves. They put the value of the stock at $24 per share:

http://seekingalpha.com/article/256040-petrohawk-higher-prov...

Excerpts:
In a conference call on February 1, management disclosed details of an estimate of some 35 trillion cubic feet equivalent ((tcfe)) of natural gas and oil resource in the Haynesville, Eagle Ford and Bossier shale formations next to Petrohawk’s interest. [...]

Judging by HK’s sale late last year of 1.4 tcfe of Arkansas Fayetteville shale resource to ExxonMobil (XOM) for $650 million, the less developed 35 tcfe might be worth perhaps $15 billion. Investors can keep that in mind as speculative upside to our revised present value of $10.6 billion, tied to proven reserves and next twelve months cash flow.
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