LGX Oil + Gas Inc ROAOF

RE: Etruscans

[Etruscans]

You're right when you say that high oil prices are having a minor impact (if any) on the cash flow of a company like Oilexco. But for such yardsticks as the NAV/Share or Equity-to Assets, the actual (sustainable) price of Brent is going to have a tremendous impact on this stock. And for those who think Oilexco's production might come online too late, they need not worry. Oil, like all scarce resources, will only become more valuable with time as it becomes more scarce. No one would have predicted in January that oil would be trading at or near $50/barrel by the end of the year. (Even Wall Street analysts still think in terms of a $28-32 barrel and have yet to come up with updated models.) But I think this is just the beginning. With the war on terror and the spectacular growth of China's middle class, oil could very reach $75/barrel by the time the 45th U.S. President comes in Office - and oil companies, like this one, will reap the benefits of years of declining supplies and poor management. In short, the odds that we face another oil crisis before long are real and difficult to challenge. All we have to do is to pick fast growing companies with sizeable reserves and wait for the inevitable. JMHO. Enjoy your weekend, tardands!