RE:RE:Target price on success: $ 24/share to $ 5,760/share
Correction on my calculation. Reviewing Recon's statements their BREAKEVEN PRICE is 30 per barrel, that likely factors in factors in all their economic variables including lifting, distribution, and royalties.
The calculation is much more simple. 500e6 OOIP bbl*($55-30 $/bbl)/176,000,000 shares
= $42.61/share
This is a number that would be gradually attained as the play derisks and does not account the costs of farming in a major. If the company finds absolutely zero resources. The stock value of the company is essentially the assets of the company divided by the number of stocks. Until those risks are alleviated, we will not know if it is, 0, 42, or 1000 per share. That is why this volatile investment should be derisked with exit strategies and why people should not invest their life savings in it.
My education and formal experience in the field has me pretty excited, I just like to provide a level headed opinion on the matter.