RE: RE: RE: Sprott Top Pick in ColombiaSure. Good bet.
CZE has 40MM bbls risked exposure in '11 that implies potential ~$800-$1B increase in mc next year. WIth only 54MM os, they are looking at $14-$18 upside. With $70MM cash, no debt and generating well over $100MM cash flow at current rates, I like their chances to add $10 to the sp.
I'm not sure I'm being fair to you though. To get to $1, that means you'll need to chew thru ~300MM warrants/options at btw
.31 and
.80. That's a ton of paper which even a ton of hype and analyst pumping will be difficult to chew thru.
So, at $1, PTA will have close to 690MM shares fd. $690MM mc will be tough. That implies 30-35MM bbl reserves at $20-$25 per bbl. And yet Sprott is only suggesting 20MM bbls risked. Hmmm.
I'll let you off the hook now if you wish.
But it will be fun watching regardless. I like Colombia a lot, particularly the Llanos.