Leah Industries, Inc. (OTC-BB-LEAH) Message Board

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Microcap & Penny Stocks : Leah Industries, Inc. (OTC-BB-LEAH)

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To: Baldur Fjvlnisson who wrote (1953)	5/26/1999 4:34:00 PM
From: Andrew H	of 2153

Yeah, 150K bbls/month is the last figure I have seen. They are looking to increase production and prove up more reserves. When oil was around 12/bbl, I believe that SM was making about $5/bbl, about $3 of which would go to Leah. At 17/bbl, the figures might be more like 10 and 6. I don't know if they pump year round, but if they do, and if LEAH gets $6/bbl, that would be about 900K per month profit before taxes from oil alone. If they sell the manufacturing operations of SM, then they will have big incentives to increase oil production since that will be their primary source of income. As I understand it, pipeline capacity may be limited but perhaps with extra cash they could help increase pipeline capacity. However, if they are looking to sell the oil operations within a couple of years, the money would be best spent on proving up reserves, IMO. If the reserves are only valued at .50/bbl (even if they can make $10 profit/bbl) and LEAH can prove a billion bbls in reserves, then there is a BV of 21/share just for oil in the ground without taking actual production operations into account.

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