Sept 22 (Reuters) - Approach Resources, a small oil and gas company, should get a closer look for its operations in the Texas Permian Basin, where land values indicate that its shares could be worth at least 50 percent more, Barron’s reported in its Sept. 23 edition.
The company’s shares closed on Friday at $24.65. Based on drilling estimates and oil at $85 a barrel, the shares have a net asset value of $42, Barron’s said.
Land of nearby competitors has sold for about $17,000 an acre.
In addition, the company is likely to be sold at some point because it may be too expensive for it to develop its oil reserves alone, Barron’s said, citing Cove Street Capital analyst Eugene Robin. Robin told Barron’s a price in the high $30s was reasonable.