I re-calculated the numbers in the George Mundel research report and used VERY conservative numbers. This is beyond belief trading at less than a dime.
I used only 500,000 barrels of oil per the 4 target wells.
I used an un-discounted $70 per barrel of oil. This gives $35 Million gross revenue per prospect lifetime. I upped the cost of drilling to $1 Million (much higher than the $650K in report). This results in an un-discounted gross revenue projection for each prospect of $34 Million.
Un-discounted gross revenues for all 4 prospects will be $136 Million. At 87.5% net revenue interest FDEG revenue interest would be $119 Million.
Utilizing current market and industry valuation trends I come up with this.
I used 50 million fully diluted shares (around 43 million as of last count outstanding about a month ago)
$119,000,000/ 50,000,000 = $2.38 per share gross revenue potential. The current industry standard has companies trading at a multiple of the per share revenue figures.
This is either the biggest fraud on Wall Street or the biggest bargain I've ever seen. When the drilling of their main prospects begins we will get our answer. This just may be the elusive 10, 20-bagger you always dream about nailing.
AI
