RE: LFD IS FLUSH WITH CASH!!!!I cannot see any merit in taxiboy's posted statement:
"LFD is flush with cash":
a) Kurds PSC contract don't want any payment until there is oil production
b) Warrants at 30 cents will give LFD $ 7.5 million
c) Warrants at 65 cents will give LFD between $ 5 million and $ 10 million
d) LFD oil production will give consortium $ 175 million in revenue starting Q4-2011
a) I think Kurds will want terms of the psc honored, and especially to be onside with Iraqi Ministry, this will have to be sorted out by company. Some slack may be cut as lfd seems to be on good terms, but securities board questioned previous financing, which was cancelled as lfd could not prove it has a valid lease? Raising future funds will be difficult!
b) no way anyone will buy a warrant at this price, with current share price where it is. Only way to boost sp is by drilling and being successful. Drilling delay must be lack of sufficient funds, so a real catch 22!
c) see b)
d) I have questioned taxiboy for previous "economic" statements. His numbers do not add up and are not consistent with other operators (Niko/Vast, Westernzagros) who are netting about 12%-15% of the revenue stream. A 5000 bopd well will net much less than $175 mm to company and of coyurse this is much down the line and so not even remotely connected to current short cash position.
I agree with other posts that the upside seems much lower than original expectations. Management needs to get their act together and start performing.