RE:RE:RE:RE:RE:RE:RE:Blue Skies after 25 cents is taken outSomeone asked about the math involved in my guess at the stock price... here is what I'm thinking but in truth theres always a mix of value / metrics and the markets at play.
The CFO recently said in a video interview that the latest activations had them around 350bbl/d which was equated to $5-$6 million in annual cash flow. Using a 4x cash flow metric which is what recent lighter oil aquisitions have acheived that would put the current value around $20-24 million.
Using the fully diluted share count of 113 million that would equate to a share price of 0.18 -0.22 which is where we are at.
The projected production number for this year are 1,800 bbl/d.... or for simplicity call it ~6x current production which assuming that would mean 6x cash flow as well.... equals ~$1.20 if we hit those metrics.
So my guess of 50 cents by the summer is more of an assumption that we would be about half way to our year end target production numbers and subsequently half(ish) the valuation.
A rough back of the envelope approach but the signs are clear that there is a ton of potential in this play. And amazingly most of this is just looking at the Bigoray EOR play... there's lots of other stuff in the cupboard and a lot of Nisku rich land which could lead us to another reef.
Good luck to all!
Magia