Bruce, you write:
"potential gross revenues of approximately $2,500,000,000"
Impressive figure. You estimate that over 10% of that will come from
CO2 sales.
"670BCF CO2 @ $.50"
Strangely enough, I always thought of CO2 as pollution. Where does one find updated market quotes on this valuable commodity? Who will be the customers for this CO2?
You also mention sulfur.
"4,000,000 lt sulfur @$40"
Again, I had the mistaken view that sulfur is basically considered to be garbage. Who will buy this sulfur and how much will it cost to ship it to market? Where can I verify the present market value of sulfur.
Isn't it common for wells to release their sulfur into the atmosphere? Why do they do that if sulfur is so valuable?
You say that you are giving
"estimated costs of recovery"
Am I mistaken in thinking that you are giving only the initial costs (for example drilling the well) and not ongoing recovery costs?
"In total, approximately $100,000,000 will be needed to drill all of the field. Much of this can be obtained through cash flow."
What are WT's cash flow projections for the next two years? How much of the $100,000,000 will be financed through new share issues, diluting the ownership of present shareholders? If they will not be issuing new shares, what financing guarantees do they have in place?
Bruce, to me, your figures sound too good to be true. But what do I know... I thought this stock was overvalued back when it was only $3.80.
Mike |
