kodiak

[jj]

Question for dan........or anyone else

In your latest 'view from houston' you commented that kodiak is near the top of your list
as a prime takeover target. What would be a reasonable takeout price?

[dan_s]

My Fair Value Estimates for each company is basically what I think their break-up or "takeover" value is. Over the years, many of our portfolio companies have been taken over by larger companies and most of the time it was near my Fair Value Estimate. For example, Brigham Exploration was taken over by Statoil at exactly my Fair Value Estimate. GeoResources was very close.

My valuations are what I think their assets would go for in a competitive bid situation, which is basically what a takeover is.

BTW I think EOG's Eagle Ford holdings are currently worth more than the entire market cap of the firm.

Everyone in the industry knows that KOG is for sale at the right price. If a large-cap puts KOG "in play" with a bid it could turn into a competitive bid situation and that can be very rewarding for the shareholders.

Frankly, I think WLL and OAS are much better buys than KOG if I were advising a large-cap.

[jj]

Dan;

Thanks for your reply.

I don't want to put you on the spot---but I will

what are the approximate takeout prices (a range is fine) that you would place on each?

for WLL OAS KOG

[dan_s]

As I explained, they are the "Fair Value Estimates" you can find in our newsletter.