Replies to post #10348 on FEC Resources Inc. (FECOF)

[irishintelligence]

I know that FECOF is not on the hook for costs associated with drilling.


Forum clearly is...but here is the good news.


When dilution occurs, and it will to raise money as you stated, PXP will have no choice but to place a valuation on Forum.


At YE 2017 PXP valued 100% of Forum at $36 Million. My modest projection for Forum was net earnings of $100M per year. Undiluted that is $6.8M for FECOF.


Let's assume our 6.8% goes down to 3.4% and FECOFs net earnings drop to $3.4M.


Standard P/E in the energy sector is 20 to 25. Let's be conservative and go with 10.


10=(x/($3,400,000/409,000,000)

10=(x/0.0083)


FECOF would trade at $0.08 per share if a P/E of 10 was applied.




I think sooner rather than later we will be bought out for $0.10/share.