Ann: Acquisition Update and Drilling Program , page-25

Hi guys,

equity: $17m
Debt: (less cash) $87m? (not sure, something like that)
= Enterprise value: $105m

Now if they have purchased assets well, or if assets generate more cash than expected, or if a drilling program makes a discovery, ALL that upside accrues to equity holders, none goes to debt holders. So you can see the huge leverage we as equity holders have here!!!.

Obviously the mkt is giving IMP absolutely no marks for purchasing assets well, and seems to take no account of the fact it is cash flow positive, and it doesn't seem to care it is likley to undertake a drilling program. The equity is probably valued at cash backing at best.

makes no sense to me. I notice the gas price is really on the move up now also. I just don't get it. When I run the numbers even a share price of 50 cents seems cheap.

GL