LGX Oil + Gas Inc ROAOF

Bugle Fireld +10,000 bopd

[TO1]

"That 40k bopd is $1.5 billion and a lot more if/when oil hits $125 a barrel." The price/bo going to $125/bo only will effect the CF/FD share to the upside if the CAD$ stays in near the US$ in Value. If you have oil prices (in US$) rising, but the CAD/US exchange rises by the same tune. It becomes a wash to the SP b/c OIL’s shares are in Canadian dollars and all CF from oil production is in US dollars and has to be converted to Canadian dollars before applying a CF multiple to come up with the SP value. Right now the US$ is slumping and it’s pushing up oil, gold, silver and every other commodity and foreign currency in the world with it. Now if the supply/demand fundamentals drive up oil and not the slumping US dollar then oil prices will rise and foreign exchanges will stay the same pushing up the relative value of all Canadian dollar denominated oil companies.