LOOK back and LEARN31 Oct 2012, Haselhurst of The Speculator -A...

LOOK back and LEARN

31 Oct 2012, Haselhurst of The Speculator -

A sample of what he was told by Graves:

Aim to increase production from approx 2,000 barrels/mth in Aug to more than 6,000 from DEC following the frac of the #1 & #2 vertical wells and with the first anticipated production from #5

QUESTION TO UP RAMPERS - How's that going?

Well let me tell you it's 3,891 BOE/MTH (month of May)

These are FACTS quoting the figures from the company's last 2 production & drilling reports on 21 May & 6 June

NO guessing here either - less than 4,000 BOE/mth and it's May not Dec 2012 or Jan 2013. Even if the separately quoted flow of 911 BOE for #5 is added (doubtful as not counted in their own total production figures for May) still less than 6,000/mth and it's May not Dec 2012.

If the total production from all wells incl #5 & #6 reaches a total of 6,000 BOE/mth, then -
Considering that GGP has not booked a profit for 10 years, so let's now say they do, and if so the maximum amount I calculate the net profit could possibly reach after all contingencies and payments out incl SRH and coy expenses ( being very generous ) at $2mil/annum, or

0.00046/share, (less than 0.001/share)

Points to remember that may impact on net profit/share if in fact there is any:

1) May lose more of the Permian acreage than that already lost
2) May lose legal case to Petro Raider
3) May lose case to Chalk Sea
4) Will be adding many more additional shares to the current number of 4.3 billion because of convertible notes yet to convert
5) Will be adding many more additional shares also because of the monthy tranche conversions by Lind
5) Decline curves have to be taken into account with all existing wells
6) Where do the net funds come from to drill/frac another hori?
7) Another raising of some type causing more dilution?