LGX Oil + Gas Inc ROAOF

RE: Another reference Icewolf

[KeithR39]

here is some help for you good40: you said: US$15/bbl is, and has been for a while, a general reference for sale of assets. FIRST This is an average figure for an offer on crude oil IN THE GROUND, not for the oil extracted by the company. SECOUND This number was an average based on a crude oil price at about $35 USD. YOU were using this one 18 months ago when we started to argue. But if you didnt notice, crude oil trades now at about $60+ USD on a steady basis, and it looks like were gonna site on that base for a while. SO, this standard of $15 USD for OIL IN THE GROUND will move...up. AND AND AND This standard doesnt apply for the companies who PRODUCE AND SELL THE OIL they found. IN THAT CASE (OILEXCO), you have to substract the average cost to extract a barrel from the selling price ! AND IN THE CASE OF OILEXCO's BRENDA/NICOL Feild, THE COST IS EXTREAMLY CHEAP COMPARED TO THE AVERAGE NORTH SEA PROJECT. MEANING that the PROFIT MARGIN FOR EVERY BERREL EXTRACTED in Brenda/Nicol is HIGHLY INCREASED when crude oil shift from $35 to $60 USD. GOOD40, YOUR PROBLEM IS that you didnt upgrade your old simple straight forward formulas since a few years. I wish this could help, but you and I know that you already know that. It looks like your 2006 agenda didnt change from 2005...