CIBC values Talisman/Sasol deal at $25,000/acre

CIBC released research today for Progress Energy and calculated the value of the Talisman/Sasol deal at $25,000/acre. They discounted the $1.05 billion value to account for Talisman's sunk costs of approximately $260 million and also for Sasol's future carry commitments over 5 years at 9%/annum. Taking the $25,000/acre value over Canadian Spirit Resources Inc.'s (SPI) 19,200 net Montney acreage in Farrell Creek equals approximately $6.25/share. This does not account for SPI's cash on hand, value of existing infrastructure or any value for their Gething land. This is one more example of an analyst demonstrating that SPI's share price is significantly undervalued.