Ann: Prospectus Closed , page-39

Hey Slick, you say "I'm not sure HOG can become a multi-bagger without another major aquisition therefore requiring a cap-raising."

I don't agree with that and here's why

1. We know they have enough cash to build their own plant for the Sorochynska wells. The next well is very derisked according to management and it will simply double production of 201. With the new plant, there will be a capacity for 30mcfd. This means we may have 2 wells (and possibly 3) producing on 9mm choke and earning US$100m in revenue pa. Now NPAT would be around $45m. If we used a PE of 8, that would come to $360m. All shares and options converted 330m gives us a share price of $1.09. So from 30c today to 1.09, that's a multibagger just on Sorochynska. This is only the B-18 zone. If they can tap into the B24/25 zone then it becomes even bigger.

2. Take into account Chernetska drilling currently and the fact that it's potentially bigger than Sorochynska. The current drill which is due to hit the primary zone in August could potentially net over 1000bopd

Just take into account the above. The company has the $$ to do all of this now and with success we could be looking at 5000boepd. No one can tell me that this wouldn't be a multibagger from a current market cap of $100m, which includes close to $20m in cash.

I cannot find a better company on the asx that is currently valued at $100m