Net Asset Value:Here's reality and how outrageously cheap this stock has become:
Common Shares Outstanding (after May 9th financing closes, ignoring over-allotment for now):
= 419.882 Million + 150 Million = 569.882 Million common
Cash on the company's balance sheet after May 9th financing closes = $13 million + $30 million = $43 million.
Today's market cap = 569.882 * 0.19 = $108.278 million. This means that 40% of the current market cap is in cash ($43 million in cash).
With today's oil price well above $100, then if they can only have 5 million barrels from Balay alone (remember what Petrobra President said, "According to Pinheiro, Balay field has a total recoverable volume of about 126 million barrels of crude oil and produces, through a consortium, the equivalent of around 30,000 boepd.") see the link below for Petrobra President comments:
https://translate.google.com/translate?hl=en&sl=es&u=https://www.dinero.com/negocios/petrobras-colombia-conserva-estrategia-largo-plazo_81644.aspx&ei=qOBrTfYfk_S2A97O1KYE&sa=X&oi=translate&ct=result&resnum=8&ved=0CFMQ7gEwBzgU&prev=/search%3Fq%3DAbilio%2BPaulo%2BPinheiro%2BRamons%26start%3D20%26hl%3Den%26sa%3DN%26rls%3Dcom.microsoft:en-us%26rlz%3D1I7RNTM_en%26prmd%3Divnso
So lets say 5 million barrel of oil from Balay goes to PTA. Using oil prices of $100 per barrel, then we get $500 million - 50% costs gives a pure value from Balay alone of at least $250 million. Enough said, will not even look at all the other assets that PTA have, if Balay alone can add at least $250 million market cap then Balay alone will double the value of PTA from current levels.
Remember what Eric Nuttal said on BNN, they could easily get at least 20 million more barrels from their property, then using the same $100 price and 50-50 costs ratio, then we get a market cap of at least $1 billion plus adding in Balay will move that number well beyond $1 billion.
The misconception with the Options:
28.6 million shares at 1.25 expires 11/4/2014. Potential cash = $35.75 million
180 million shares at 0.75 expires 10/8/2014. Potential cash = $135 million
35.938 million shares at 0.60 expires 11/17/2012. Potential cash = $21.563 Million
From recent financing:
75 million shares at 0.35 expires 5/9/2014. Potential cash = $26.25 Million
If all warrants exercised, then there will be an additional 319.538 shares and cash to the company's balance sheet would be $218.563 million
I don't think people realize that if all the warrants are exercised they would add over $200 million market cap to the company, everyone is too concerned about the number of shares, but the cash the company gains will offset that additional shares.