wakeup to gdn valuation, page-4

Hi all,

I stopped posting many months ago as I thought there was no point trying to convince people who only wanted this stock, company, directors down as they had been burned in the past.

You nailed it Brainy but please accept that I add something to your post :

P90: 16.7 bcf = 16 MMBTU = $67 million is around 13 cts
P50: 60.4 bcf = 60.4 MMBTU = $214 million is around 40 cts
P10: 212 bcf = 212 MMBTU = $ 848 million is around $1.50

Therefore 13 cts would be a very short term conservative view of where the share price should go.

Some confidence on what management has been doing should take the share price somewhere between P90 & P50, say 25 cts, why ? because their programm to drill more wells in the same field will give P90 a incredible push without a doubt.

As TCF wouldn't be very happy with me I didn't mention the Jonhson range iron ore royalties which I believe will eventually take part of the SP increase in a big way.

Now, the best scenario for all the genuine long term holders and the ones who want to become some of them is to see these options in the money. Remember that the company has :

- No debt
- A 100% owned project
- And they will be looking for money to comtinue the big development of the field which is now proven to be big and will get bigger as they keep drilling hence the reason why they want to keep full ownership.

These option in the money means more dilution which will have to happen by all means but which will give the company enough money to drill more wells quickly, enter into the production phase and generate income as they keep drilling and stay away from debt funding.

At the same time, we all need to vote aginst the option approval for the last lot (86.5000.000 of them) on the 18th of October as that would give the options the final push and we would avoid to many of these new free coming options to be dumped staight away and create a negative impact at the wrong time. You probably all have received the proxy in the mail, so do yourself a favour, use your right to vote !!!..

Now, I beleive that if this options are in the money, TCF is right $1/ share would be the medium term target without a doubt and probably 40 cts just after the end of November.

For the doubtful minds, please sell asap.

Philduc,