RE:RE:New management The new money does not take over the company "at first glitch".
If CBM Asia can't deliver the new money takes the Sekayu property. In the event of a CBM Asia failure they are in effect paying $11 million dollars for Sekayu, which has 276 bcf of gas audited to CBM Asia.
Does that suck? Yes and no. It's certianly not the $5/share touted years ago. However it does provide $11 million to develop Kutai (incidently $11 million is $0.04/share)
It also puts a value of $0.0395/bcf for CBM Asia's audited gas.
That puts Kutai, with 705bcf, at a sale price of $27.8 million. With 270 million shares that's a value of $0.10/share for Kutai.
If CBM Asia, not just Kutai, is sold for $0.10/share , then $5000 at $0.02 is worth $25000.
That makes the market certianly
not against me. I am buying. I am buying low.
A low shareprice means the market is with me when I'm buying. It makes my personal average price extremely relevant to me, that's how I'll make money. Anyone who is holding shares or selling shares, low share price means the market is against them. You said the market is with you, if you're simply holding the market is certianly
not with you.
Seeing someone willing to pay 4 cents/share for the Sekayu property, and extrapolating that to a value of 10 cents/share for Kutai property, that does not make me a bag holder.
It does make me willing to take risk with my money for a potentially very nice reward.
Shareholders bought previously because they thought CBM Asia share price was low compared to the value of its resource. It was low based on what people would pay for gas in Alberta, Texas, and Australia. Now we know what people will pay for CBM Asia's audited reserves in the ground in Indonesia. That derisks it a fair chunk for me and definitely makes me view buying at 2, 3, 4 cents as good value. Doesn't mean I don't think the value of Sekayu wasn't a rip off, but it does mean I think I can make money off that value at this share price.
The market is with me when I'm buying shares low. I'm investing here, at these low prices, because I expect the market will again be with me when I'm selling my shares high (the b*** will be if it's not with me in 2 months, 1 year, 2 years, etc)
Good Luck To All.
- Security. Each Note in the principal amount of CAD$20,000 will be secured, on a pro rata undivided basis, by a pledge over the equivalent of thirty-six (36) of 0865665 B.C. Ltd. Shares representing 0.15% of the total issued and outstanding shares of 0865665 B.C Ltd.
- 0865665 B.C. Ltd. holds a 26% interest in Sekayu PSC in South Sumatra, Indonesia. The Sekayu PSC has a National Instrument 51-101 compliant engineered recoverable prospective resources of 1,062 Bcf (177 MMboe) of which CBM Asia is entitled to 276 Bcf (46 MMboe). Each CAD$20,000 Note is supported by 414 MMcf (69,000 boe) of recoverable resource. The Sekayu PSC 51-101 engineering report is available on the Company's website (www.cbmasia.ca - investors/engineering reports).