Electrical supply issues have slowed Eland Oil quest for completing their latest drilling campaign in OML-40. The electrical supply issues should be resolved soon and sometime next month they will bring this well online and their daily production should reach 30,000 barrels plus a day.
Eland proposes to reach 50,000 barrels a day by this time next year.
So at 50,000 barrels a day and oil selling for about $60.00 a barrel, that would bring in $3 million dollars a day or $1.095 billion dollars a year.
Elcrest should take in $246 million plus a year from that total with Starcrest receiving about $137 million a year.
How much of that Hydrocarbon Cast Flow will ERHE secure in their deal with Starcrest?
If ERHE could secure 20 basis point of that 45 basis points as Eland Oil has, ERHE could be receive the same market valuation as Eland, but at a lower stock price due to all of those ERHE shares outstanding.
I would estimate about $.38 share at 10 times earnings less thier own expenses.
Who knows, maybe, Eland, ERHE and Starcrest drill block 11A in Kenya?
Just Food For Thought!! So please conduct your own research in case I am mistaken.
Have a Great Day and Remember, If you do not take charge of your life, Someone will always try in calling the shots for you. So Giddy Up and start researching your future!
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