There are two ways to evaluate a gas/oil company.

1. Calculate a cash flow per share and then multiple it by a suitable P/CF number (look at comparable companies) to get a stock price.

2. Net Present Value calculation or multiply the gas/oil reserves by suitable value per mcf or barrel.

Total acreage = 339,000 acres

GMR.VN = 120,000 acres

JNR.VN = 55,000 + 155,000 = 210,000 acres

Misc. = 9,000 acres

1 well drilled in GMR.VN land (Forest Oil pilot hole)

1 well drilled JNX.VN land (Forest Oil pilot hole)

Junex has 9 - 13% interest in total.

5.2 tcf * 0.13 = 676 bcf

Equivalent NAV per share = $2.25 to $6.50

To get a 51-101 gas reserve calculation they have to drill hundreds of hole in the boundary and the middle of the gas reserve.

Keep in mind Junex has 6,000,000 acres in Quebec and they MAY hit gas and oil and other areas.