MineralRite Corp (RITE)

[iblong2]

I really do not see how we could value this company anywhere close to $240MM market cap. The property they are planning to purchase has 171 producing wells with proven developed producing reserves of $6.5 million. That works out to less than 2bpd per well assuming 300 operating dpy and $90pbo. The remainding value of the prorerty comes from proven undeveloped non-producing reserves valued at $394.7 million and potential undeveloped non-producing reserves valued at $115.4 million.

Once they get a revenue stream going and can leverage it to develope more wells or additional properties, we could see that type of market cap. My expectations are $0.50 - $1.00 pps short term and maybe $1.00 - $2.00 by the eoy.