Post by
Lonegaurdian19 on Dec 28, 2023 7:02pm
Recurring but small
As things stand I believe they have around $3 million in the bank. I'd love for Gil to buy something small. Even a stripper well will get some recurring cash flow. I'm assuming the cash on hand is earning at least 4% interest but covering overhead while we wait would be nice. This company doesn't have to be a lottery ticket if they can use their cash to buy a producing asset or two.
Comment by
argaiv on Dec 30, 2023 8:33pm
I know nothing about valuing and buying oil and gas wells. If it was that simple, wouldn't he had already bought a producing asset? I wonder how the AGM went, and if there was any discusson about what is in store for 2024.
Comment by
Lonegaurdian19 on Dec 31, 2023 3:22am
It's not that difficult, you take the risk free rate then subtract expenses. Decommissioning is also a big part. So say treasury bills pay 5%, and someone want to exit the oil game, which happens. If you can get a return above 5% net you take it. Problem with Eco is they Dillute when they should get an asset that pays their salary while we wait.