pfc announces successful drilling of baldwin 2, page-80

Don't lose sight of the bigger picture guys, remain patient and we will be rewarded

From: http://www.proactiveinvestors.com/companies/news/14642/baraka-energy-resources-bakken-style-oil-shale-play-goes-down-under-in-southern-georgina-basin-14642.html

Under Valuation Guide

"Oil and gas explorers like Baraka carry high risk/high return scenarios (although we would expect a diversification by Baraka in 2011 would mitigate this risk somewhat). A dry hole in the Georgina Basin carries a probability. That Baraka is free carried through to undivided 25% working interest up to completion of a minimum of 500 meters of horizontal drilling into the Basel Arthur Creek Shale on either EP 127 or EP 128 - is a significant plus for a small explorer.

Despite the fact there have been oil and gas shows in past drilling; we have still risked Baraka’s unconventional prospective resource at only 5%, until the play is proven commercial. Imputing value to an unconventional resource is more difficult. The conventional resource is risked at 15%, in consideration of the fact that the oil is discovered. Ryder Scott used a higher geological chance of success of 16-22%.

On a 5% risked valuation analysis guide, this would assign a risked valuation on Baraka of $0.068 a share. At a 10% chance of success the implied share price guide would be $0.12. At the higher risked valuation of 20% it would be valued at above $0.20 a share. "