current evaluation, page-4

cch

Sorry, I over looked your valuation.

Here is my current valuation.

Couple of points, you have not factored in flow rate drop off's or royaltys. B1 started flowing at 340mcf but I can assure you it wont be anywhere near that now. it will probably net just over $100K for the year.

H1 is still not proven, it could be water also! Assuming it is ok, factoring in drop offs and royaltys it could probably net over $1.5mil for the year.

J1 has intercepted 6 to 8 feet of thats a lot smaller than what we seen so far, not sure if this means smaller find?


Lets assume accross B1+H1+J1 they have 39bcf and 300,000 bbl oil after royaltys that up to $30mil net revenue over the life of the wells which could be over 10 years?

Lets say Burleson does a cap raising for $5mil, it will need to dilute the shares by about 50% adding another 100mil shares to the registry.

Lets say with the revenue + cash at that stage, accross 300mil shares, it will equate to about 5c a share.

So current price of burleson I think is fair.


Moeller was to prove a 100+ bcf and 2.8mm bbl oil resource, which was probably worth about $150mil after royalties. thats 5x the size of all 3 other well's combined. and would have raised up to $14mil in cash by diluting the shares by not much over 20%

Thats why Moeller was such a big deal and why Burleson is worth so much less now.

It's not over sold.