GREY:ENGFF - Post by User
Post by
7phigyerson Jul 01, 2008 3:04pm
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Post# 15247768
ENG Valuations
ENG ValuationsI know it's hard not to speculate on the SP if we hit oil but I think that possibly some of the numbers that have been thrown around are perhaps a little reckless.I have to admit I bought into some of it but then sobered up to realize something.
Even if we do hit oil the cost of putting this well into production will be staggaring ,will it not? No infrastructure even remotely close we are starting from scratch ,are we not?
And we all know the most likely way ENG will raise funds will be through PP = dilution.We could easily double the current number of outstanding shares.Understanding that if we do have a hit we will likely be doing it from a stronger SP position.
Now don't get me wrong ,even if we do double the current outstanding shares the potential here is still quiet large 5X on Kunene alone from current levels.Then Hartman ,Congo,+ future targets that will enevitably come with success and and a good reputation.
Dry at Kunene will spell disaster IMO causing financing from a .50 -$1 SP position, forcing milllions of shares into the market.
Trying to stay objective here any insight welcome.
L8R