Black Sea Energy
On August 5, 1998 six million shares traded hands at 0.12- 0.13. Even in this brutal market this company appears to be highly undervalued. Here are the facts lets start a discussion.
Company became public in June 1997 - US$80,000,010 at US$3.35
Shares out 89,600,000
Insiders own 38,500,000 (42.9%)
Robertson Stephens Investment Funds holds 9,900,000 (11%)
Main shareholder - R. Friedland (34,000,000)
Balance sheet as of May 31, 1998 in Canadian Dollars (exchange 1-1.5)
Cash 50,250,000
Equipment 30,900,000
Accounts Rec. 3,300,000
Oil Inventory 1,500,000
Total -----------86,950,000
Debts - 11,000,000 Includes current and non-current liabilities
They value their oil and gas properties in Russia at 95,000,000.
On May 19, 1998 legal proceedings were filed in the arbitrage court in Russia against BSX seeking the cancellation of the option on their one of their main oil property - the Tura deposit. On August 5, 1998 BSX announced that the court case would be postponed until Oct. 1, 1998.
If they win the case they will be producing more than 4000 b.o.d this year and 8,000-10,000 b.o.d next year and will have over $2/share in total assets plus cash flow
If they lose they still have two other large properties in Russia and approximately $1.00/share in assets (not including the oil and gas properties) with only 0.10/share in debts. This includes over .56/share in cash. In addition if they lose the court case they will be partial compensated for work they have performed on the Tura deposit during the past 14 months (approximately $30-50 million)
I think the facts speak for themselves |
