GREY:ROAOF - Post by User
Comment by
Darilonon Oct 22, 2007 2:57pm
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Post# 13616987
RE: Schacter on BNN
RE: Schacter on BNN"His $20 target was based on 4x estimated 2008 cf of C$4.55 per share,
which is 240mm shares X $4.55 or $1.09BN. Explain that one, then consider the 4x multiple using the last 2 years with a 50% tax on profit."
Simple really. Oilexco has enough E&D expenses to write off against profits to keep them tax free for some time to come. After that, some projects will begin to be taxable and others will keep writing off their costs until they are payed back. $1.1B cash flow with $60 netbacks require production of 50k barrels/day. An additional development well at Brenda plus tying in Ptarmigan should easily account for 30 of that with Shelley providing the rest. Of course there may be more upside as I don't have time to fact check your post for more than is obvious.