RE: news out-stockwatch Thank you dread dogs for posting the last two news releases and thank you to Osprey10 for your valuable insight. Personally, I think that it would be a shame if the creditors sunk this company. I can't imagine what value would be left to be sold off to satisfy the various debts.
Ok, I would like to share my "I have a dream" speech. Keep in mind I know absolutely nothing about what I am about to say, but still, I would like to get something out of my investment, even if it is only entertainment value. Let's say the current debt of OEL is 4 million dollars. Lets say that the creditors accept 25 cents on the dollar, which I think is close to what the QEC creditors settled for. Lets say the creditors are paid off in shares, at three cents a share, and at 25 cents on the dollar they would receive 1 million dollars worth of shares, or, at the close of 3 cents a share, they would receive about 35 million shares. I think OEL outstanding share total may have been about 15 million at last trade, so now we have a total of 50 million shares outstanding.
Now apparently OEL has investors willing to step in and refinance
the company. Let say the company raises 1 million dollars by issueing 35 million shares at 3 cents and is able to not only get their field back up to 150 boepd day but increase it up to 250 boepd. Now, I don't know if that is a realistic cost structure or not, but hey, its just a dream. OEL would now have no debt, 85 million shares outstanding, and, if the reserves are there, a value of 10 million dollars at a very conservative $40,000 per flowing barrel. This would now give a value of 11 cents a share to OEL. Now I thought at one time OEL thought they could get up to 350 boepd from the field. Lets say OEL raises another 1.5 million dollars by issueing 15 million shares at 10 cents a share. OEL now has 100 million shares outstanding, 350 boepd valued at 14 million dollars, and a share value of 14 cents a share. I think at that point the creditors would be breaking even. Sure, I know, things aren't that simple and don't work that way, but hey, it's a dream. Good luck to us all!!!