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Gold/Mining/Energy : Solana Petroleum Corp -- Ignore unavailable to you. Want to Upgrade?

To: Mr. Oil who wrote (359)	11/12/1999 8:34:00 PM
From: Baba 2	Read Replies (2) \| Respond to of 1747

Taff, Thanks so much for your valued input. Lots of stuff happening all over the place and sometimes its tough keeping track of it all. Long BKP, SOP and CVL.....

To: Mr. Oil who wrote (359)	11/13/1999 8:39:00 PM
From: Taff	Read Replies (3) \| Respond to of 1747

Ray, here is some more ________ for you to ponder What does Cal Canal mean to Solana? Or any other JV company based on 1TCF There are some basic functions to value a company on, if anyone else can give some ideas, but I use the following. Good will, which gives a 5 to 7 years to base the formula on. If there is no good will 1 to 3 year would be a norm. What the heck go for the full 7 years Net retained earnings, monies after all deductions. Future earnings, based on current inventory and future findings. The value of the reserve in the ground. oil at $5.00/bbl and gas at $0.50 mcf. Sale vale of gas and oil to a producer is wholesaled to a utility or refinery. Oil at $15.00 and gas at $2.00. (Estimates only) Therefore, I assume 5 to (7) years + (plus) current net retained earnings X (times) inventory / (divide) by shares issued There is no appreciable net retained earnings, and can be ignored. There is no appreciable current debt, and therefore is also ignored. Royalties paid to land owners or governments. 12 to 40% only estimated, as I don't know the real number. Downtime for well workovers, and quotas 30 to 65 days Formula based on one trillion cubic feet of gas If I were to use the maximums of 300,000,000 mcf - (minus) a royalty of 25%, X (times) 365 days less downtime 65 days (300), X (times) the percent owned of the JV times 7 years / (divided) by number of shares (300MMCF x 75%) 225,000,000 X (365 - 65) 300 = yearly production of 67,500,000,000Bmcf X $0.50 = $375,000,000 Earnings per year are then $375,000,000 / (divide) percent of JV ownership 25% equals $59,062,500 / (divide) number of shares issued. Approx. $3.00 per share If I have made any errors please change them... and let me know Anyway that's how I do it? See ya later Taff