In fairness the business probably has a market value more like $72.5m with debt obligations of $58.5m. Shareholder value is down near $14m.
The bad news is the debt taking almost all the potential value and all this creates in terms of risk and inability to do much. The only good news is that with an increase in the total perceived value of 100%, it adds 500% to shareholder value.
100% or $70m sounds a lot but decent acreage would help. Even 1,000 boepd from the 3 new wells over a decent period would add tens of millions of value.
FDM Price at posting:
1.3¢ Sentiment: Buy Disclosure: Held
