Repost: Zeev, here are some Pinnacle Oil, SFD tidbits to blow you mind...
Zeev, I found this quote to put things in perspective. Charles Yeager of Western Atlas, the largest seismic company in the world, said “IF IT WORKS, IT (THE SFD) WILL PUT US OUT OF BUSINESS."
(As an aside, in August 1998, Baker Hughes (NYSE: BHI) acquired Western Atlas for $4.8 billion. Maybe Charles got nervous and sold high...HA HA)
But this will stun you. Assume that seismic costs on average $10,000 a mile to shoot and interpret. If they have an airplane with one sensor flying for only 5 hours a day at 150 miles an hour, 5 days a week, 50 weeks a year that comes out to 187,500 linear miles a year. The seismic dollar equivalent of that is 187,500 miles times $10,000 a mile (assumption above) or $1.87 BILLION. 2 airplanes = $3.7 BILLION, 3 airplanes = $5.6 BILLION, 4 airplanes = $7.5 BILLION. Remember in my other post I pointed out the ENTIRE WORLDWIDE seismic market it 1997 was $3.5 billion. With 4 airplanes these guys can do the equivalent work as twice the entire oil industry in the world. One lousy company!!!! I think that equivalent amount of spending should find them a handful of prospects <heavy sarcasm intended.> (By the way, there are at least three working sensors built at this time. They are in bank vaults.)
My stock certificates will soon be in bank vaults as well... Ha Ha.
-Dilution
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