Daybreak Oil and Gas Inc (DBRM)

[geopressure]

I certainly agree that DBRm is undervalued & the company seems to be headed in the right direction, but a price target of $5.00/share within the next calendar year does not really strike me as plausible…

As a very basic, rule-of-thumb (not actually based on anything solid), a given non-major oil company usually receives approximately $1 Billion in market-cap per 20,000 BOEPD of production…

So if you are looking to achieve a $275,000,000 Market Cap, then DBRM will need approximately 5,000 BOEPD of production, or a really good reason for the market to deviate from this heuristic.

My biggest grip about DBRM is that they are nickeling & diming… If they know how to find oil $ gas, they why are they wasting time & money going after small wells when their talent & drilling capital could be utilized to develop prospects with more significant reserves. Drilling 3K ft horizontals to chase 40 BOPD IP Rates is kinda silly. Horizontals & fracking is not necessary to make cheap 40 BOPD wells. They are drilling in the wrong places...