Replies to post #23753 on Treaty Energy Corp. (fka TECO)

[ericshon3]

I agree 100% with Coolnapz when Treaty hits the 1000 BOPD in Texas this stock should be trading at least .30 a share. Now if we hit oil in Belize we are talking about at least a $1 stock.

[coolnapz]

Putting the charts aside for a moment, I think there is a strong fundamental case for 30 cents.

1,000 bpd X $ 80/ barrel X 365 = $29.2 mm/annum

For expenses, assume we have last year's rate of expenses times 2 which comes out to about 11.4 million. (details below)

$29.2 mm annualized revenue - $11.44mm annualized costs = $17.76mm

$17.76 mm / 750 mm shares o/s = 2 cents EPS

2 cents EPS X conservative 15 P/E = .30 PPS


Adjust the multiple upwards when we get the Belize strike.


[EXPENSES: That's 4.3 million for the first 9 months of 2011 (see quarterly filing below) annualized would be about 5.7 million.

(http://quote.morningstar.com/stock-filing/Quarterly-Report/2011/9/30/t.aspx?t=PINX:TECO&ft=10-Q&d=67cc6105a4ddde42b91d1de6e4a79530)