RE:A Stellar DIVIDEND vision !10,000 BOE/daily would be outstanding but were producing 576 boe right now. Next 18 months/1.5 years goal is to get to 3000/ BOE which is also quite good in terms of a small producer.
My excitment is with the AB Gas Play...... tons of potential and can generate some great Cash Flow very soon. The company plans to sell it off to dump a major chunk into their columbia play which could turn out great. I wonder how much they would sell the AB gas play for once production has started and fine tuned. 50-75 million ? Company said AB play could generate 20 million a year from that play.
If that happens it really comes down to their Columbia wells hitting and producing. If they can hit some good wells we could achieve 3,000 boe in 12 months instead of 18.
All we really need is for Gas and oil prices to stay above 70$ over the next 3 years and we'll all be laughing.
If oil goes to over $100/barrel by june 2022 the oil sector will explode.
The next 6 months will be quite exciting and interesting imo
GB
gamer007 wrote: My dividend investment thesis for AXL in the next few years !
Simple back of the envelope expression for context purposes!!!!
10,000 boe/day X US$50 free cash flow per boe = $500,000 per day
---$ 15 million per month
--- $ 180 million per year
--- 50 % payout ratio on cash flow with NO DEBT to service !
--- $90 million divided by 280 million shares fully diluted = 32 cents US$ per SHARE Dividend
As Doc Jones would so eloquently say " The Math is The Math" !!!!!!!!
I fully understand why Marshall Abbott stated " The new team came in and worked for FREE to rehab this GEM of a project ! "
Gage Jull, Charirman of the board regarding the Alberta Montnay Gas play.........with 1.8 TCF of nat gas.............." That's extra, we got that for free, from the RTO a few years back"
All I can say is this is going to get very interesting in very short order !!!!
GLTA