TSXV:CLAS.H - Post by User
Comment by
gregoooon Jan 18, 2012 1:02pm
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Post# 19417571
RE: sky is the limit......$$$$
RE: sky is the limit......$$$$ So they should have the Long Term Production Test permit by mid Feb - then based on 2000 bopd - net 1800 bopd to QEI and BWN the well should pay for itself in less than 100 days- 1800 bopd x $90/bbl=$162,000 /day - $16,000,000 to drill and complete. Then QEI drops to 35% x 2000bopd = 700 bopd plus the current 300 bopd equates to 1000 bopd net. as above take off $10/bbl op.costs and QEI has fantastic cash flow= $90,000 /day.approx $2,700,000 / month = $32,400,000 / year. Current market cap $48,000,000. Cash flow per share .08 - just what we are trading at. I understand that oil and gas stocks normally trade at 8-10 times cashflow ( correct me if I am wrong here) which would be a lot higher than the current level- imo. Should have lots of cash to drill a few more wells this year - 2 in Block 21 and then another 1 or 2 in Block 27?
Should have the environmental permit for block 21 in March - applied for in August and 8-9 months as per Block 27's time for approval and drill in May/June before the September dead line.
Maybe we will get an operational update from management soon.