weird?, page-19

Jordan

On the companies balance sheet the "value" of its oil and gas properties on book is $190 Mill. Firstly there is a good chance they may loose some acreage if they haven't already and the fact they haven't done a reserve report in a looong time suggests its probably "worth" a lot less than that.

But for interests sake lets say $150 Mill to be kind.
Then you have what $60 Mill debt to take into account so $90 Mill left to divy up.

there is 1 billion shares on issue and about 350 mill 2.5 cent oppies. lets say 1.4 billion shares.

Take 90 mill amoungst 1.4 billion shares = 7 centss per share.

IMO the book value of $150 Mill is still way to kind atm. Sure if they actually produce gas in the next 5 weeks it may be accurate but if they dont the book value should be drastically reduced.

For 20 cents to be possible the company would need to be producing 20+mmcf at 5mmcf I would consider 5-7 cents PS reasonable at what they have now i think the Sp is fairly valued becasue if no gas flows the company will be sold at firesale and everyday joes will not get a cent back after secured creditors are paid out.