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Petrobank - At least 100% upside ?

|Includes:ATP Oil & Gas Corp. (ATPAQ), CHK, CNQ, COP, XOM

I recently started in on Petrobakken. Detailed a few points here.

valueinvestorcanada.blogspot.com/

Then moved briefly into Petrominerales. And now taking the next step and looking at the parent of the two Petrobank.

I'm still working and will document for readers, but I feel pretty comfortable that both Petrobakken and Petrominerales are undervalued.

Here is what Petrobank owns. Each PBG share owns:

1.04 shares of Petrobakken @ 23 = $23

.64 shares of Petrominerales @ $27 = 17

Total is $40

Current share price of PBG is $40

But that is not all. PBG owns 100% of Whitesands which is Petrobank's heavy oil business unit that owns a best estimate contingent rerecoverable bitumen resource of 670 million barrels.

Per the most recent company slideshow the PV10 value of Petrobank's share of Petrobakken and Petrominerales is about $3.5bil. The PV10 value of it's HBU is also about $3.5bil.

So very rough estimate. Petrobank owns $40 per share of public securites in PBN and PMG, then with the same PV10 it would also own about $40 per share of HBU. That would be about $80 per share vs the current share price of $80.

But there is more. The also own a potentially very valuable THAI technology that may be a breakthrough on significant improvement on bitumen upgrading.

And don't forget that both Petrobakken and Petrominerales appear quite undervalued and that both have significant growth in front of them.

I will be delving deeper into these companies.

Disclosure: Small position in Petrobakken

Stocks: ATPAQ, COP, XOM, CNQ, CHK