EGOH came out with huge news about starting operation&revenues.
http://ih.advfn.com/p.php?pid=nmona&article=48339947
Here some potential evaluation made by an investors very expert on OIL field posted on IHub under Screaming Eagle username.
The share count is not going to escalate much from here if any. The money paid upfront is being used to pay down the remainder of debt that the company owes. Please confirm everything that I say with Mr. Brian Wilmot.
1) Mr. Brian Wilmot told me that the outstanding shares were around 95,000,000. This just last week.
2) Let us assume that there is 12,500,000 bboe in this field.
3) at 100.00 per barrel nymex strip price = 1,250,000,000.00
4) PV-10 of 1,250,000,000.00 = 125,000,000.00
5) 95,000,000 shares into 125,000,000.00 = 1.31 per share based upon 10% of the recoverable reserves...
This is a very conservative way to figure value / share price.
What premiums the market will add for a debt free company that is pumping oil with 1 employee??
Lets look at it another way:
1) 173 wells pumping 8bbls per day production = 1384bbls a day
2) 1384bbls a day X 350 days = 484,400 bboe per yr.
3) 484,400 X 100.00 = 48,440,000.00 per yr gross
4) 48,440,000.00 - less 50% = 24,220,000.00 per yr gross with 1 employee and debt free..
This is a strong little business if it can be developed as per the business model and the wells produce close to expected production.
It is my belief with the field up and running the share price could trade and fluctuate between .60 and 1.10 per share. Belive it or not, take it or leave it. Lets see your projections and valuation. We are a long way off, but every journey starts with one step at a time.
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