GREY:ROAOF - Post by User
Comment by
Resilienceon Mar 26, 2009 10:49am
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Post# 15872682
RE: Shelley - even if, what's it worth incl. dilut
RE: Shelley - even if, what's it worth incl. dilut
They mentioned in an article they needed to renogiate the Sevan for Shelley. Shelley IS mentioned as part of the
deal.
But to humour people: even if they get Shelley and around 6mmboe 2p. With 227.5 mln shares outstanding and extra dilution to create funds. How much is that really worth?
Market value at best is 6mmboe at around $11 per barrel is 66 mln. How much dilution would they need at say 13 cents? let's say $ 25 million conservatively, just to operate, that would be 192 mln extra shares - FD 420 Mln.
Value then becomes 66 mln/420 = 0.16 cents - where's the upside? This option is already calculated in.
Furthermore working in the North sea will be very difficult for OIL from here-on-out.
I think your clutching at straws and at the very least there's more value out there for the same price with loads less risk.
Any sane person staying in this OIl saga was for high risk/reward. That's gone now, any which way you turn it.
Good luck & always keep thinking for yourself,
R.