NUMBERS!!!!!Hello Everyone,
SOURCE OF FUNDS:
75,000,000 Warrants at .75 cents gives: $ 56,250,000 (Expiry July 7, 2011) General public
9,500,000 Warrants at .65 cents gives: 6,175,000 (Expiry September 29, 2011) Soros
4,162,000 Warrants at .65 cents gives: 2,705,733 (Expiry October 14, 2011) Insiders
Total Source of Funds: $ 65,130,133
DISBURSEMENT OF FUNDS:
Capacity Payments 25,000,000
Drill two holes 20,000,000
Available funds: $ 20,130,133
Plus:
Sale 4,800 barrels *40% * $ 100 * 365 days 70,080,000
Less: 40% royalty * $ 70,080,000 (28,320,000)
Less: cost to produce 4,800*.4*365*$ 10 ( 7,080,000)
Net Cash on hand: $ 55,170,733
Shares o/s 144 million + 88 million 232,000,000
Cash per share 23 cents in cash
Analysis: Done correctly, LFD will be flush with cash and have an oil producing field. We are trading at 23 cents per share on speculation alone. Following my model, within 1 year we could be sitting on 23 cents in cash will an oil producing field and no debt. I have assumed only a production rate of 4,800 barrels of oil per day, very minimal, compared to 20,000 barrels per day.
Given that VST has hit oil, very evident by news release and huge rally, I expect confirmation of that news to send LFD soaring. They will hit and surpass the warrant prices within 30 days.
JMHO