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Longford Energy Inc V.LFD



TSXV:LFD - Post by User

Post by taxdemiccoon Jun 12, 2011 11:56pm
335 Views
Post# 18705449

Warrant Holders (30 cents)

Warrant Holders (30 cents)Hello Everyone,

Lets not forget that LFD will receive an additional $ 5,625,000 once price surges past 30 cents since warrant holders are in the money.

I do understand that warrant holders don't have to excercise for 24 months, however this opens the door to a possible loan to be repaid back once warrants are excercised.

So LFD has $ 7.5 million and, can easily borroy $ 5,626,000 short term giving warrants as collateral.  

With $ 13 million in the bank, this will easily cover both drilling costs and initial installation for oil production.  

Other matter.     With WZR being on 8 Km aways or less than 4 miles away from LFD land and, with WZR confirming that Jeribe formation is flowing at $ 9,000 barrels per day of oil, double what LFD said was done historically on theirs, doesn't it make sense that one would have to assume that LFD will easily 10,000 barrels per day or more.

Given that WZR is so close to us, wouldn't it make sense that LFD trade at the very least near the $ 100 million to $ 150 million level given that a 6000 barrel per day find is valued at the market at $ 300 million.

I mean doesn't the market include some speculation such as 1/2 right, 1/2 wrong.   

At the current price, LFD is priced as if no drilling was planned.   Very strange indeed.

I guess LFD will explode all of a sudden for catchup.

JMHO
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