EZ Traders Forum

[treepeople]

PowerPole, Spark,

Here's an exapmple of why I've been looking forward to this R/S, and why I'll be scooping up any cheapies with my free cash tomorrow:

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Nord Oil -- http://www.nordoil.com

$52 million market-cap ($0.02 PPS X 12 (reverse split) X 216M o/s)

6,300 BOPD (from estimated production on website: 2,300,000 for 2006 / 365 days)

48 million BOE reserves (15m proved + 33 probable)
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Value comparison -- chosen purely at random
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Duvernay Oil Corp. (Toronto Stock Exchange DDV)

http://www.duvernayoil.com

$2 billion market-cap ($40PPS x 50M o/s)

12,000 BOEPD (Barrel Oil Equiv. per day, they’re in oil & gas)

36 million BOE reserves (proved & probable)

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Summary -
DDV produces double the oil per day
DDV has less proven/probable reserves
DDV has 40X the market-cap

Assume half the market-cap for Nord Oil because it has half the daily production -
(but remember Nord has higher reserves)
Then say half that again for the Russia/new entity risk premium (a very aggressive punishment, IMO)

$2B X 50% X 50% = $500 million market-cap

That market-cap is still almost 10X higher than the current $52 million

Treepeople