Thanks for the update but I made over $100k on this puppy and put it all on GCHC. No risk in GCHC, I'll leave you guys try and make some here. GCHC going to $20 if Vietnam project receives nod this month so I'm betting a sure winner. GLTA.
I really do not see how we could value this company anywhere close to $240MM market cap. The property they are planning to purchase has 171 producing wells with proven developed producing reserves of $6.5 million. That works out to less than 2bpd per well assuming 300 operating dpy and $90pbo. The remainding value of the prorerty comes from proven undeveloped non-producing reserves valued at $394.7 million and potential undeveloped non-producing reserves valued at $115.4 million.
Once they get a revenue stream going and can leverage it to develope more wells or additional properties, we could see that type of market cap. My expectations are $0.50 - $1.00 pps short term and maybe $1.00 - $2.00 by the eoy.
I got to talk to someone from the company for the first time today. You are correct, there will not be any significant dilution with this deal. I have now changed my price target to $1.00 - $2.00 short term.
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