SITTING ON $ 40 BILLIONHello Everyone:
LFD has a de-risked asset that has a historcial production of 5,000 barrels per day. A material find could yield 1 billion barrels of oil or more. This means asset could be worth up to $ 100 billion. LFD is sitting on 40% of this asset.
Given that MAJORS are hungry how much would they be willing to pay for this 40% share. LFD is currently valued at $ 20 million for this share, that has the potential to be $ 40 billion to itself. So if you were an EXXON OR VALLERES OR SINOPEC, how much would you be willing to pay for this and, at what price would management be inclined to sell and walk away happy.
My hunch is a $ 500 million offer at about $ 2.75 per share.
For the majors, a $ 500 million investment is peanut change to them, especially when they can work this to potential $ 40 billion asset and more.
In December 2011, there should be MATERIAL NEWS!!!!
JMHO