Casimir Capital Target of $0.30 in late 2011Cannacord also had a target of 30 cents or $7.50 post consolidated.
This was based on expected results from the upcoming drilling of the first deviated well into the offshore FV concession.
RJ's targets were in the same range.
What has changed ?
1....RPT does not have the WC surplus that it had then...remove 75 cents
2....the gas processing plant was just stumbling along with very low gas prices and producing little free cash flows....add $1.50 ( 7 times $5.5 million )
3...the investment climate for Argentina was slightly better back then
4..natural gas prices have tripled and oil prices have increased
Add it all up and I see no reason why that target should not still stand.
It projects a post consolidated cash flow of about $1 per share...about $23 million US.
Thats about $18 million or so from the FV offshore reserves net of any JV interest.
Lets assume a 50/50 carried interest......6000 boepd X 50 %X $50 per boe X 50 % cash flow rate X 365 days.
Thats $27 million US in cash flows net to RPT in such an arrangement.
Add Magallanes and the oil rich Duck concessions and workover of 10 wells, and such a target is reasonably achievable.
Every time and any way I look at RPT and its assets, I cannot see us staying below the $1 level for very long.
Investor discovery or the first move by management to unlock the keys to asset development, and we are on our way to the $2 level..