RE: grommetGrommet and T01
I think a couple of valid points have been made by both of you.
The point I attempted to make was not that we are going to hit $50/share after a single well, but rather the upside medium term (1-2 yrs out)...I've even heard that N. Piper may hold closer to 1 Billion barrels, but didn't want to inflate too far beyond practical numbers.
As far as I've heard, Durango is going to be taxed at somewhere between 40-50% (Believe T01 is right) on production in the North Sea. These taxes kick in once Bridge recovers its costs. However, royalties are zero.
Based on commodity prices and "projected" production forecasts, I believe we could be looking at cashflows of close to $1/share. Lot of foundation to build on. Those cashflow will increase share price and thus reduce dilution as we all realize that we will need another financing down the road. That having been said, excercize of the warrant that many of us are not happy with will add another $40 million or so to the coffers.
Cheers
T2