Ophir Resources Co. (SUFF)

[jufel]

(Post #2)

I'm an adventurous kind of man so Today I
will speculate some scenarios respect to
one of the ENTK's stream of Revenues:

"Recovery of natural crude oil from Dead Wells"
http://finance.yahoo.com/news/ENVIROTEK-Introduces-Low-Cost-iw-184050166.html?x=0&.v=1

Relevant Data from above PR
1. Dead Wells are typically projected to be still holding almost 65% of the original crude oil

2. There are hundreds of thousands of capped Dead Wells with high quality crude oil across South America

3. ENTK has secured the rights to a revolutionary oil separation process which will allow the recovery of crude oil from the Dead Wells, using a chemical based formulation along with a high range pumping system, increasing significantly production of crude oil at a low cost per barrel.

4. ENTK is releasing ...geographic locations of high volume Dead Wells, where the company plans to start with the Oil Recovery process."

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A very Speculative Calculation of revenues for this First Project:

1. Let's assume 3 Parties involved: The Oil field owner (Owner), ENTK and The Inventor of the technology (inventor).

2. Let's assume a contract in these terms:
- Owner takes 80% of the production and assume cost of the production.
- Entk + Inventor = 20% of the production.
- Entk goes 50% / 50% with the inventor for every project.

3. A Typical high volume oil well recovers an average from 500K-1000K Barrels from Primary and Secondary recovery for the Life cycle of the well. That accounts for around 35% of the entire volume in a reservoir. So Potentially, It can be recovered an additional 30-35% of the remaining Oil.

4. Let's assume that We can recover 30% of 500K bbl = 150K bbl. The production Of a well declines across the years. So, the First year we can Recover around 30% of 150K bbl = 45K bbl for the First Year.

5. Let's assume for this first small project we will have 200 wells of similar features.

6. Let's calculate ENTK's revenues for the FIRST YEAR.
Total Production First year = 45K bbl/well x 200 well = 9,000k bbl
Owner Takes 80% = 7,200K bbl
ENTK + Inventor = 1,800K bbl
Entk takes 50% = 900K bbl

7. Let's assume avg. price for Oil = $70/bbl

8. First-Year Revenues for ENTK = 900K bbl x $70/bbl = $63,000,000 = $63 mil

9. Let's assume that I'm off 20-25% of my calculation assuming cost etc. with Trimmings Earnings = 50 mil.

10. EPS For this project = 50 mil/2.5 mil shrs = 20

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TOTAL EPS for 3 projects = $2.01 + $1.16 + $20 = $23.17

P/E: 7 ---> PPS = 162.19
P/E: 15---> PPS = 347.55

Warning:
This is a very speculative calculation.
Dont base your Investment decisions on this post

Jufel