Longford Energy Inc V.LFD

LFD VALUES INSIDE

[taxdemicco]

Three Ways of Valuing LFD:

Option 1 (Asset Value)

 132 million barrels of oil *$ 90 per barrel * 40% - 40% royalty =  $ 2 billion asset value.

 $ 2 billion asset value / 150 million shares = $ 13 per share (asset value)

Option 2 (Buyout Value)

 Per recent buyout $ 60 million was paid for well producing 700 barrels per day.

 LFD has 5,000 barrels per day giving value of $ 420 million

 $ 420 million / 150 million shares = $ 2.80 per share (BUYOUT VALUE)

Option 3 (Revenue Value)

 5000 barrels per day of oil per day * 40% * 365 days * $ 90 per barrel = $ 67 million in revenue
 
 $ 67 million in revenue minus 40% royalty = net pay of $ 40 million

 $ 40 million / 150 million shares = Earnings of 26 cents per share

  26 cents per share earnings * 30 times = $ 7.80 per share


CONCLUSION: 

No matter how you cut it, LFD is way undervalued just with 5,000 barrels of oil per day.

[maysteeler23]

Exactly. We know the block has at least 5000 barrels a day. Documented by LFD and Generl Energy. Which is referred to as a COMMERCIAL Block.

[maysteeler23]

CLL recently sold a 700 barrel a day property for $60 mill. If you do the comparisons, right now LFD has that same valuation. So currently we know that LFD has at least 5000 barrels, which is documented and proven. The valuation conversion gives LFD s 5000 barrel a day valuation of amost $3. And that doesn't even include the potential 7 billion barrels that is on the block. Right now LFD

[coolrunning]

A few issues with your valuations:Option 1 - do they produce the oil at no cost and you are calculating everything in present value dollars.  No one will pay $1 today for $1 they are going to receive in 10 years.  That dollar is worth about $.10.Option 2 -  the deal you are referring to is a well in Saskatchewan and not where LDF's assests are based.  There will be a

[good40]

They don't have 132 million barrels of oil,  they have 132 million barrels of " pretend " oil with Prospective resource.You have Prospective Resource... under your trailer and under your beer patio.But if they do make a discovery and it is appraised significantly do be described as P50,  it is worthbetween $4 and $5 per barrel undeveloped... not $90 per barrel,  which