RE:RE:USO annual Shareholders meeting.well, based on 2000 barrels per day at 360 days per year and an average netback of $4.50 per barrel, we are looking at annual profits in the range of 3.24 Milllion or 9.1 cents per share.
This is based on an estimate of $50 per barrel.
a rise in the price to $55 effectively doubles this income to 18 cents per share. (some of the additional revenue goes towards royalties as I think those payouts go up & down with the price of oil)
This is the number I'd be most likely to bet on. 18 cents per share. Valued at 10x earnings works out to $1.80.
I'd place a target price in the range of $1.50 to $1.80 once full production is achieved.
As for financing, they spoke of a number of options including more debt for share agreements.
There is also the possibility that they may look into open up a line of credit for working capital. or look into other options to clear up the balance sheet, but those issues are a work in progress.
I seem to recall saying they still have 2 mil in cash but do have payables in the range that you spoke of. The hope is that if they get producing quickly, the incoming revenue will hopefully help with this situation.