Just some thoughts on a strategy for the options to show there...

Just some thoughts on a strategy for the options to show there is value in buying them. IMHO.

buy 250,000 heads at $0.05 for $12,500.
buy 1,000,000 options at $0.01 for $10,000.

Scenario 1
If FP was a duster you'd probably be left with 250,000 FPO that may or may not ever recoup your total costs. You'd need the share price to go to $0.09 to break even.

Scenario 2
If time expired but FP proved commercial and they then bring further wells into production. You'd again lose the options, but would have 250,000 FPO that would only need to hit $0.09 for you to recoup your investment and then would start to make a profit.

Scenario 3
FP1 is commercial and the share price goes above $0.11 and the options are then worth exercising. For example FPO hit $0.15 and options hit $0.05. Your FPO are now worth $30,000 (gain of 300%) and options are now worth $50,000 (gain of 500%). If FPO hit $0.20 then the gain on FPO is 400% and options 1000%.


These calculations and thoughts are only back of an envelope stuff as Melua would say.
So please correct me if I'm wrong.

I just wanted to show that I think there is value in the options.

Cheer
WizJP

DYOR
These are my own thoughts and not investment advice.