Petro One Energy Corp CUDBF

RE:RE:someone posted at fair value of $2.17 for pop

[GreatSwami]

Just a comment here - once that 6 million dollars PP comes in with shares at 25 cents and attached warrants at 37.5 cents that one transaction alone adds some 48 million new shares to the POP float. There is another 20 illion shares out there in the form of "in the money" warrants and share options.

All-in fully diluted POP will have 35% of what they have now for prospective oil resources (remember the BPO statement in favour of "the money"). As well as having only 35% of the "potential value" of the land holdings (The "Money" takes the 65%) - POP will also have some 127-128 million shares outstanding.

Keeping in mind that it is hugely unlikely that much of those prospective resources will ever be converted into producing 1P (or even 2P) bankable reserves - how then do you put a reasonable value per share?

In one very simple calculation taking the blue sky mbers put out by others here that yield a $1.50-$2,50 per share value (at 59 million shares outstanding) - lets divide that by what will be the real fully diluted share float at such a time. Lets take the high number of $2,50 per share. If you run that through 128 million shares (instead of 59 million) you get to about $1.15 per share. However since that also assumed that 100% of the deemed worth of the land falls to POP we need to reduce that by a reasonable factor (like 65%!) - and that brings us to $0.40 per share... (Of course if POP does not have to pay any drilling costs, no abandonment liabilities and gets a service "management fee" for each well drilled - that brings their value per share back up higher again. But again such lofty valuations assume that all the land gets drilled and all the wells are economical.

All these back of the napkin calculations are worth what you have paid for them of course - but at least get the share count right!

GS