leverage

User "Jovann" made good assumptions and eastimates to calculate the value of a success at Moriary and MacLeod for EGO. The same calculation applied for BFE shows the huge laverage for BFE in the case of a success:

MORIARY:

11MMBO (x) .10% (BFE share) (x) .70 (estimated) recovery rate (x) $23.4 (approx after costs for oil at $84.5 av price) = 18.02 M

18.02M (/) 31M shares on issue = 58c

current BFE SP is 10 cent

factor is 5,8 for success on Monday/next week


LAKE MacLEOD

150MMBO (x) 0.075% (BFE share) (x) .70 recovery rate (x) $23.4 = 184.28M

184.28M (/) 31M shares on issue = 595c (!)

the factor is 59,5 for a success!!


Just to make it complete, if both wells comes in the factor would be

18.02M (+) 184.28M = 202.3M (/) 31M shares on issue = 653c

factor would be 65,3 ... :-)

it seems that we have residual oil at Moriary - there is a chance ...