Post by
Sandpoint on Feb 06, 2021 10:22pm
Stock Price Estimate
The lower estimate of oil reserve is about 8B barrel. Exxon has a proven reserve of about 25B barrel and a market cap of $200B or about $8 per barrel. At this rate the RECAF resevers should lead to a market cap of about $64B. The current market cap of recaf is about $300M with a stock price of a out $3.5. At a market cap of $64B the stock would be $746 or about 200 times the current price. The upper limit of price base on reserves of about 120B barrrel is about 15 times higher. In short if they find what the geologists say is there, the price will be somewhere between 200-3000 the current price. But if they drill dry holes, it will be zero.
Comment by
NameOfTheGame on Feb 06, 2021 11:40pm
It won't be zero in the worst case scenario. The company has cash on hand and no debt. They would continue to finance more exploration but it would be a drastic drop.
Comment by
C6J6Dub6U on Feb 07, 2021 12:06am
I would sell my house and use those assets to double down. The other side shows to have bigger deeper holes
Comment by
FastIroc on Feb 07, 2021 12:45am
............so what kind of price do you see in a month after next update ?
Comment by
Chas15 on Feb 07, 2021 1:04am
That would depend on the update, if things go smoothly I think in a month we will have a solid foundation at $5. The past week was really telling - other than that drastic drop intraday Friday, it was very stable with consistent gains. Which bodes well for the stock. So, by end of February I'm banking on anything under $4.50 to be last months news - onto $5.
Comment by
teheran10 on Feb 07, 2021 10:03am
They can buy me out at $150-$250 next year.
Comment by
hipfner on Feb 07, 2021 8:20pm
100% in agreement. Compare this with Valeura, a sure-thing in 2010. Equinor paid for their wells and took a major loss. As did I. There is no sure thing. Until the basin is drilled and defined this is a speculation. (and I'm owning this)