• BP acquires 135,000 acres of the Fayette shale in Arkensas from Chesapeake
• Acquisition price is USDbn 1.9  USD 14,000/acre. In comparison, QEC is valued at $1,600/acre
• The Fayette shales is currently producing and is thereby more mature than QEC’s shale in Quebec
• QEC has ~300,000 net acres in Quebec, and using the same value/acre would value QEC’s acreage at USDbn 4.2 (NOKbn 23.1) – NOK 117/share
• This value is comparable to where we expect QEC to get if the current drilling program gives results in line with Talisman’s and Forest oil’s expectations
• Talisman will present on a conference September 3rd , and they could present news from the well currently fracking the shales in Quebec
• NOK 40 TP & STRONG BUY recommendation reiterated