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Longford Energy Inc V.LFD



TSXV:LFD - Post by User

Comment by EOIMon May 05, 2012 8:16pm
255 Views
Post# 19876128

RE: dividend

RE: dividend

The fact is that oil and gas business is a capital intenstive business. The 10 cents dividend could as well be history because by the time they pay around $19 million on the dividends plus the around $3.8 million being paid as termination fee to management, the cash remaining to pursue any deal is less than $16 million. Withis remaining cash, forbes will lay claim to services and admin fees as well.

I can bet that the 10 cents dividend is as good as fairy tale. Maybe you might get 5 cents but not 10 cents. You cant drill a well with that amount of money left.

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