Aroway Energy Inc ARWJF

RE: RE: RE: RE: RE: RE: RE: Overvalued!

[davpro]

Actually if you refer to the corporate presentation you will see that the average daily production was 617 at the end of December and it rose to 988 at the end of March however part of the increase was due to an additional 100 boe of gas that was turned on which would have to reduce the 90% oil figure... and that gas would only be marginally profitable.

Also according to Chris they recieved a very low price for oil during this period 45-50 in Jan rising to 66.50 by april so about a 56 average. However the production cost per bbl remained a constant so its unlikely that very much of that "cashflow" is available for reinvestment.

If they are to do all that they intend to do, then they will almost certainly have to raise additional funds. A 9 million cap-ex is unlikely to be covered by cashflow alone.

Anyway I'm still waiting for the financials before I pull the trigger and if they are reasonable then .32-.35 will be fine as an entry. Hopefully they intend on developing that large pool prior embarking on these other exploration activities. 

But since I'm just a basher you are free to ignore all this