Respectfully, I have no way of knowing the exact valuation for ZLUS for where it should fundamentally trade as that will ultimately reside with ZLUS. However, I can derived a ”potential” valuation for where ZLUS ”could” fundamentally trade based on some speculative and known variables which ultimately depends on the potential and substance delivered from the company along with how the market absorbs such potential and substance.
So, from the posts above, ZLUS should be trading at a rate of .028 per share per 1 well brought online. I will take this one step further and consider both an approach of .028 per share per 1 well brought online and an approach that considers .028 per share per ”3” wells brought online. That’s an average of… .028 ÷ 3 = .0093 per share per 1 well
So this means that there are two perspectives; the ”very” conservative approach of .0093 per share per 1 well brought online and the ”original” conservative approach of .028 per share per 1 well brought online. In my opinion, both are conservative.
So, with the one well that is confirmed today from the news to be brought online, ZLUS should be ”very” conservatively trading at .0093 per share. Consider below the future ratio of share price increases for the conservative exponential growth of 60 wells that’s believed to be the capacity of wells for ZLUS that’s broken down on a per well basis brought online below…
The “very” conservative consideration of .0093 per share price per well brought on line: 1 well = .0093 2 wells = .0186 3 wells = .0279 4 wells = .0372 5 wells = .0465 6 wells = .0558 7 wells = .0651 8 wells = .0744 9 wells = .0837
(For the share prices above, it was confirmed that Kepco is the operator for the drill programs for ZLUS and receives 25% while ZLUS receives 75% of the valuation. Consider the share prices above with a 25% reduction.)
I think the most important thing to remember is something that I mentioned above in that ”potential” is the #1 reason why we all buy any stock today. We all buy a stock today in hopes that it will obtain/achieve certain growth objectives to fundamentally justify trading at much higher levels from confirmed substance.
The PR was awesome ”not” in the fact that it was something that was going to ”immediately” lift ZLUS to the moon, but in regards to setting the stage for key growth. Now, with the news today from ZLUS… simply put... the stage has been set.
This is why you read from within the ZLUS forum from a great many awesome posters that ZLUS is viewed as an awesome ”investment” and not viewed as a trade. This is why some of us see ZLUS trading in the teens and much higher in the coming weeks and months.
At a rate of 3 to 4 wells brought online per month… that’s a total of 9 to 12 wells brought online by the end of March 2011 and a total of 18 to 24 wells brought online by the end of June 2011.
That means that the share price for ZLUS, at the ”very” conservative .0093 per share rate per well, should fundamentally be trading between the ranges of .0837 to .1116 per share by the end of March 2011 and at a share price of .1674 and .2232 per share by the end of June 2011.
OR
Or, that means that the share price for ZLUS, at the ”original” conservative .028 per share rate per well, should fundamentally be trading between the ranges of .252 to .336 per share by the end of March 2011 and at a share price of .504 to .672 per share by the end of June 2011.
The even better news is to consider the share prices of ZLUS above if I am only half right with the amount of wells brought online from the already conservatively derived information. ZLUS is looking like a ”Nest Egg” type of investment/stock.
This is why investors are slowly and quietly accumulating shares of ZLUS. The more wells that are brought online, the more confidence that investors will have in that ZLUS will get to that 60 wells online that some of us have been talking about. Keep in mind too that this was based on the bare minimum of 50 barrels of oil per day (Bopd) that very prolific oil wells bring out of the ground for Bopd. Who knows? We might be able to have some awesome results to where some of our Bopd from certain wells to be much higher than 50 Bopd such as did HyperDynamics Corporation had from the success of their wells which went from being a penny stock to now trading on the Amex/NYSE under the ticker HDY at over $6.00+ per share from just 11 wells at such time: http://investorshub.advfn.com/boards/read_msg.aspx?message_id=58500832
With ZLUS and their portfolio of wells, thus far, we know that they are primarily operating from two properties of wells; the State Lease #2 well and the Sanders #1 well. I have to say that I really like our chances here with ZLUS to either mirror HDY or achieve something of a huge magnitude compared to these current levels. So, the 60 wells that is thought to be put into operations by ZLUS should be considered across the spectrum of these two wells and not just one as from what was originally considered. Still, the bottom line concept should still remain the same as it doesn’t matter if it was from one property or two or however many properties. It should be a little more obvious that 60 wells is a lot more obtainable than from what was previously considered.
The PR today stated that the State Lease #2 well was spudded and drilled on 28 Dec 2010. In my opinion, it looks like ZLUS will be able to meet the thoughts mentioned within the forum of bringing online 3 to 4 wells per month.
Another key note from the news today was that many were expecting to see an update from the Sanders#1 well. The PR stated that the drilling from the Sanders#1 well was delayed. I think the market took the explanation of that delay the wrong way. The company delayed the drilling of their only one previously announced well, but drilled another just as promising well within the same timeline to stick to their previously promised dates to begin their drilling of one well while still immediately preparing to begin a second drilling from a very promising area.
They are still on schedule as it didn’t matter what property they started their drilling on. It was initially planned to start their drilling on the Sanders#1 well, but due to some unexpected flooding of hunters because of the area being a very prolific duck hunting site, they started their drilling on their other well property which was newly introduced to us as the State Lease #2 well. The news really is awesome news and leans more towards the confirmation of what many of us believe for an exponential valuation.
Because of the company committing to drilling this project by the end of 2010, it seems as though some hidden support that we have not been made known aware of (for now) is now on board. The way the company mentioned the importance of this within the PR had to have been for greater reasons than what we as shareholders are privy to.. just yet. It appears that the company proved to ”a” or ”some” key entities that they are for real and should be now taken very serious in what they are building as an oil and gas company. I take this point to be very subliminal in nature.
The PR mentioned that both the wells and the core samples indicated strong oil and core samples in two different pay zones. From that info alone, I think it’s fair to consider that we will blow away the minimum number of barrels per day (Bopd) of 50 Bopd for at least this well so the numbers above for future ’potential” share price valuations could be considered extremely conservative as further updates are released.
In closing, we have the Sanders #1 well, the State Lease #2 well, and many other wells to look forward to as the company made it very obvious that many more updates are in the queue for being released. It is a huge plus to show the company’s dedication and zeal towards growing their company from the dedication that the company has shown to work around the clock during the holiday season. They could have easily waited until after the holidays to have started their drill program, but instead, they not only started it, but finished enough of their drill program to release within the PR today that the company will be up and running into production by the end of this month, Jan 2011.
The remainder of 2011 looks to be very promising for ZLUS as the news today confirms that we are well on our way as the company has stated that they are immediately moving forward to begin drilling on a second well on 1,600 acres of prime oil and gas exploration land within an area of significant proven reserves that has seen considerable success in the past. I think we will do ”well” here in ZLUS.
Market Data 
Markets 
AI
