Desert Mountain Energy Corp V.DME

Presentation has been updated

[Bertie20]

Lots of important information on slides 17-20. Their other area (Gilcrease) isn't even mentioned at all (which is fine by me). 

https://desertmountainenergy.com/wp-content/uploads/2020/09/DME-Investor-Presentation-09142020.pdf

[Spip113]

I suppose the projection per well is per year ($8,942,000).  Right ? If so, revenues would be in the order of $8.20 a share per year with 55 wells, no charges included. Feel free to comment. Have a nice evening.

[Bertie20]

I think the revenue figure is modest, as production is likely to be higher than their baseline (remember: DME only perforated 5 feet of the lining). Anyhow, I'd estimate around $450 million a year revenue with 50 wells, and--big guess--profit of some $150-$200 million. Based on the historic PE ratio of 15 and 75 million shares, that would suggest a share price of some $8 a share. This could be

[Boscoe2015]

Definitely some interesting metrics being thrown around. I also think dependent on the well lives this company could pay out dividends. Jmo.

[GoldenArm]

You can read more into this when you see that the overall cost per year is projected at $33M in the first year which leaves a gross profit of $20M if you use just 6 well @ 8.9M per well in revenue. After that there is only $12M in expenditures over 5 year ($2.4M per year to bring in 44 to 49 more wells) which will boost gross profit higher every year (correct me if I'm wrong). IMHO they will

[jrk8888]

Nice update. I agree that they seem to be underestimating revenue especially looking at those first 2 wells. But that $8.9 million is average per well. It's certainly possible that they get bought out after an independent reserve estimate and some more wells get drilled. Especially if the $$$ is right. Share price held up pretty well for a rocky week.