Banter and General Comments .. BRK, page-11776

You make some good points.

Yes, a load of cash did go in through highly dilutionary cap raisings.

If all that cash raised was spent with no return through cashflow and asset build, the BRK MC would be much, much lower. Just as is the case for unsuccessful oilers and mineral explorers.

If BRK spent that cash , the wells failed, and the MC was at current levels, I would agree with you.

Capitalizing drilling expenses that fail to discover/ prove an economic resource means an intangible exploration asset gets put on the books, which invariably gets written off as there is no value created to carry .


The fact that drilling was successful means those " exploration' expenses are moved to the producing asset part of the ledger when developed. That expenditure and development expenditure also booked are then depreciated as reserves are produced.

That cash BRK raised has been/ is about to be spent x2 over when the FMDP wells are fracked and completed. There has been a substantial increase in the value of the asset base and there will be a substantial boost to revenue and profit. This has not been reflected in the market cap and with BRK trading below book value, is why we are having this discussion.

I think in a round about sort of way, we are talking about the same thing

Cheers

Dan