Happy spud day!, page-74

What can we Infer based on David answers as copied above.
.
Estimate of Market Cap at which dividends will be paid out?
The target of 2000 BOE/Day is equates to a profit $14.6 million per year profit at a all-inclusive profit of $20/BOE.
.
All in profits of 14.6 million at a industry mean P/E ration of 13.6 implies a market cap of 198 million.Explanation: The oil and gas P/E earning ration average is 13.6 , A profit of 14.6 million after Operating expenses and Cost of goods etc would imply a market cap of 198 million.
.
Currently the market cap is 12.3 million, so an intrinsic market cap of 198 million is just over a 16 fold increase in market cap. We could say, well perhaps SHE will be undervalued then…well perhaps it might, but if its generating a profit of 14.6 million then it might only be worth 5 times more than now,… but what will happen once SHE pays dividends, will it then reach or exceed its intrinsic value making it a 16 fold beggar compared to now.
.
Estimate of reserve value of 4 Certus type wells if executed ?
David has indicated that each well has a EUR of 10 billion cubic feet of gas with each mcf (thousand cubic feet) of gas attracting $1.2 profit, doing the sums for 1 well this works out as 10*1000,000*$1.2 or 12 million dollars. But from reading David answers oil will generate 4 times the amount of profit as gas, so 4*12 million = $48 million for the oil component. Add the oil and gas components you get a estimated profit for O&G EUR value at around 60 million.
.
But David has indicated in a answer they can do 4 wells, this works out at 4*60 $million or $240 million.
.
That is a tidy sum of profit from O&G reserves to be sitting on.
.
.
David has indicated that they will probably reach their targets Profits with 2 to 3 years
So considering the above SHE value should reach its target production of 2000 BOE/Day within 2 to3 years(lets call it 2.5 years).
.
This 16 fold increase in intrinsic value implies a annual growth rate between now and then of around 300%/year , so now 12 .3 million, next year around 36.9 million market cap, year after that of 113 million, and finally after 2.5 years 198 million with 2000/BOE per day production and then dividend payout.
.
SHE oil and gas has experienced large growth historically with occasional dips .
.
What else might happen
wells might be empty, but the webinar David and Bill seemed to think it was low risk.
.
At dividend payout the market cap might well exceed 13.6 p/e ratio, some o&g companies have a P/E ratio higher
e.g. PVC P/E =200, SUBC P/E=136, lots of others with some even exceeding 5000+.
a lot of them have mcap of the order she might have.
.
.
.
'SHE has the means ,the Cash and has indicated the will to achieve this. So why would it not ?'
.
.
Caveat
The above are extrapolated as based on my personal interpretation of what David has said looked at from various perspectives. I am not a professional and this is not advice, do your own research as I may be completely wrong, or unforeseen events might happen during the next 2.5 years.The above is supposition, extrapolation and inference. And none is fact at the moment.. only time will tell.
.
Do your own research.