over excited, page-39

halberd45

looking at the stock 18 months ago it collected $1.4mil in revenue for Q1 2008, that doesnt explain a 32c share price, not when it spent $2.4mil on exploration with a total loss for that quarter of $1mil


comparing the stock price from 18 months ago is misleading as there is now 3x as many shares. so for the company to get back up to where it was 18 months ago it only needs a share price of 10c (as 3 shares exist now for each 1 back then). so NWE is basically only half the price it was 18 months ago.

if the company cap raises $18mil to pay for WA and to get more sysmic going in the UK by doing a 1:1 rights issue at 3c, then that halves all your end profits, which are already down 2/3 from 12 months ago. - but this is the only way company can finance all this exploration work.

short term price over next 2 - 3 years will come from the WA play, they will spend at least $15mil over next year or two, so need to make that back before net profits. and the money they do make back will be going to the UK drilling etc, so again no net profits / building of cash.

sorry mate, but there will be now crazy growth in stock price untill net revenue starts rolling in from the UK project the way i see this, which could be 4 years off..

I am not disputing the project, i am just looking at what price tag on the share price could come of it, and the maths dont add up to anything good until much later down the track, ie years.

and without being able to calculate revenue of the UK project (ie how many well's, and flow rates) you really have no idea what the end result could be.

slowly slowly catch a monkey..