RE: Do you ever - Yes What'' Not to Love?Denham, the Harvard Endowment fund, invested in FEL when they went back to being an E & P, so we are in good company.
Per the webcast in Oct 07 at Canaccord Adams, FEL has historical on stream costs of about $25,000 per BOE. https://www.newswire.ca/en/webcast/slideViewer/index.cgi?eventID=2022020&media=win&slide=123&stream=https://webcast.newswire.ca/archive/canaccord20071025W/fairborne20071025.wma
With a 140,000,000 Cap Ex budget for 08, at the historic on stream costs, they could increase the YE 2007 production of 13,000 BOED by over 5,000 BOED or roughly 38%, or above 18,000 BOED.
They had funds from operations of $25.35 in the 3Q financials.
In the current price environment [AECO NG averaging above $7.50 this quarter vs $5.61 in last financials and WTI above $100 vs $80 in the last financials], that could increase cash flow from ops from the $100,000,000 pro forma at the time of the conversion, to above $200,000,000, [or in the $2.80 CFPS area] on an annualized basis with the increased production at YE 08.
Slap a 5X CFPS on that and the stock could be a double by YE 08, and just beginning to develop its 500+ drill ready locations.
What's not to love?