We dont know for a fact that Mr. wilmont has even sold stock. After talking with him last week he didnt sound like he was in a position that he even had to. His comment to me was that "I dont want to give the house away", referring to the negotiations that hes been working on for weeks. He's very confident about the geo work showing 500 million dollars of "recoverable oil". All the wells are in, the storage tanks ,roads, and all needed infrastucture to make money. Once Nitro gets texas permits signed off, the tankers can start driving in. The 800K debt is pocket change. Do the math and see why. 5 wells are already to pump, add another 10 with Nitros 1st round = 15 wells X 8 barrels per day= 120 barrels per day X $101.per Barrel= $12,120.per day X 365 days= $4,423,800. per year minus 22% royalty of $973,236. leaves a pie worth $3,450,564.00. Additionally add a conservative 100 more wells and you get a nice number of $26,454,323.00 per year. If I were Mr. Wilmont I would have all my freinds and family members buy stock, take 5 million a year to pay a dividend to the stockholders of 32 million shares, which would easily raise the stock price to $1.56 a share with the dividend set at 10%. Then issue myself preferred shares with a dividend and preferred shares available for further bargaining or simply buy some more leases to develop or invest into a basket of low risk dividend paying stocks like altria group and sell out of the money calls every month of the year that will expire worthless but together would generate 12 to 15% more income per year. After a few years with these proceeds the dividend could be doubled and the stock would then double to $3.00 a share with a dividend at 10%. You still would have at least $10,000,000.00 a year to light sweet Havana cigars with for the next 40 years. Then I would get the company listed on the nasdaq. Incidentally the stock wont take long to consolidate and shake out down here, the very few sellers left makes ready for a good run up. Have a nice day, Sincerely yours KB.
