Management also released its estimate of resource potential for selected areas outside the Axe Lake Discovery area (areas B and C in figure below) and for the adjacent permits in Alberta (area D in figure below) which is 3.0 billion barrels and 4.5 billion barrels respectively.
On a fully-diluted basis the company has currently 250 million shares, of which management owns 19%. If we take the acquisition price of the former privately held North American Oil Sands Company paid by Statoil on April 27th this year at $0.91 per barrel recoverable reserves and apply it to BQI's 10 billion of estimated reserves (assuming 50% is recoverable), we get an estimated market value of $4.55 billion for Oilsands Quest, or $18 per fully-diluted share. Beside the favorable valuation the company has top notch management with a track record of building an oilsands company (CEO, Chris Hopkins founded Synenco [TSX: SYN]).
The sharp price jump yesterday indicates that BQI could have reached its bottom at the $2.50 level (see chart below) because the move was accompanied by an extremely high turnover.
Disclosure: the author has currently no position in BQI, but intends to buy shares of BQI in the coming weeks.