20 quid tullow

Recommendations: 2
I cannot resist doing back of an envelope calculations...Try this one:- Talk again of tripling production levels within a couple of years say 200,000bpd at $80 or £40 (as an aside this is a London quoted Company dealing in assets quoted in Dollars...if the Dollar were to appreciate against Sterling as surely it must in the near future by say 20% the Translation Gain would feed straight into Tullow Profits) equals £2.9bn.2007 Gross Profit margin 45% would give GP say £1.2bn and Overheads £200m PTP £1bn before a Tax Charge at say 35% to give after tax Profit almost £700m ; coincidentally there are just over 700m shares in issue to give EPS approx £1. On a P/E say 20 for this rapidly growing Company gives a SP £20. Incidentally I raised the question of Employee Share Options a few days ago...there are 14m outstanding which is quite an incentive. No wonder it is a much loved Company by its Employees...dont get me wrong I am all for it ....the more they make the more we make! I realise this is very rough and ready but as I have said before it gives an idea of what could happen here with a fair wind. I am really getting quite excited! Regards H