Please assist with these due diligence questions I have a few questions and concerns for the group. I'm interested, but need to play devils advocate before I put my hard earned money to work here.
Here goes:
(1) Share dilution: In the corporate presentation PEI balance sheet proforma, we have Actual 2022 Stockholders equity of 16,262,329. Then, in Forecast 2023 we have Stockholders Equity of 27,135,160. What is the explanation for this?
(2) Previous mess: What is the status of the old ownership group's broken dreams? Since it was in bankruptcy it seems to me there is a risk for old claims and litigation that come out of the woodwork? thoughts?
(3) Horizontal drilling is too easy: To suggest that in the 80's they only did vertical, but now we can simply do horizontal drilling and capture decades of continuous, low decline, low cost oil seems too good to be true. It would have been done by now. Why didn't the old group do this? Horizontal drilling has been around for a while.
(4) Dollar per BOE: Q1 2023 says operating netback is -$20.72. Total cost per BOE is $79.58. So they need $80 oil or they start burning through cash.
Hey, don't get me wrong - I'm interested. I've seen the youtube videos, it's an interesting story. Just trying to identify the risks before I put my money in.
Thanks all and good luck if you are already a shareholder!