Candax Energy Inc CXEYF

RE: Adriatic sea

[Blindbat1]

Just say they only get 2000 bpd net from El Bibane. Assuming $60 Brent, they will netback around $55 bbl. That's $44MM in cash flow from El B in '07 alone. That means CAX is trading at 0.61x '07 cash flow. Damn cheap when average multiples are 5x cf... Dunno, but I am an optimistic dude - but honestly with Operating Cost + Exploration Cost + Bribes (Opps... sorry I meant finders fees) + Royalties to pay.....me no think that out of the $60 bbl they get $55.......way South of that ..way South. $ forecast for viable digging in any Oil outfit, is with BBL at around $30.00 - so it gives you an idea on the South part of the equation. Got to be financialy viable when all is said and done, with the assumption Oil is at $30 bbl, any uptick to that price is gravy in the pocket to be shared with all the blood suckers hanging around you in those countries, that's if you want to avoid sudden delays, unforseen accidents or fires! Rock and roll places to do business - trust me on that one, I have 10 years of scars to prouve it ! Build and exploit with assumption of $40 or so , and you are in deep trouble. JMHO.