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Gold/Mining/Energy : OEL.V Osprey Energy Limited -- Ignore unavailable to you. Want to Upgrade?

To: The Osprey who wrote (388)	8/18/2000 10:18:43 AM
From: The Osprey	Read Replies (1) \| Respond to of 1134

I like this part of the news release. It has resulted in three wells being reworked and producing in excess of 100 barrels of oil per day. The company expects this production to increase as facilities and pipelines are repaired and the wells tied in. Eight additional wells are scheduled to be brought on production before the end of the year and are projected to produce in excess of 75 barrels of oil per day each. The company will receive 100 per cent of the net revenue from the property until payout. 100% payout.This means Opsrey will receive 100% of the revenue from the Bayou Choctau play until their investment is recaptured and then they go to 60%.Based on this scenario then assuming 100 barrels of oil per day at a conservative 25.00(us)per barrell= $2500.00us per day or using a currency conversion factor of 147%= 3675.00/day X 340 days= $1,249,500.00yearly. Add to this the fact that they have stated 8 more wells will be brought on before year end producing in excess of 75 BOPD EACH and that is an additional 600 BOPD to come on line befroe year end. 600 BOPD X 25.00=$15000.00 us per day X 147% for conversion X 340 days =$7,497,000 from these wells meaning the total payout should be done in a very quick time. $1,249,500.00 Can+ $7,497,000.00 can = 8,746,500.00/year from the Bayou Choctau play alone.After payout the percentage to Osprey drops to 60% of 8,746,500.00=$ 5,247,900.00 Can.Not bad at all.Applying a multiple of 3 to cash flows per share should give a good indication of where this should be trading at by year end based on Bayou Choctau alone. Cash flow per share projected to year end on Bayou Choctau details in the press release: Total O/S shares = 5,334,288 Total Revenue =$ 8,746,500.00 Can X 60% after payout=$5,247,900.00 Before Payout = $8,746,500.00 ------------ 5,334,288 shares O/S Cash flow per share before payout = 1.64/share Cash Flow after payout= $ 5,247,900.00 ------------ 5,334,288 Cash flow per share after payout = .98/share Applying a valuation multiple of 3 to cash flows this stock should be trading at 1.64 X 3 = 4.92 before payout and 2.94/share after payout.And the best part of all of this is they stated they have positive cash flow from the Jenner Project in Alberta and from the Livingston field and are awaiting info from their partners before they tell us what they are doing.This is getting exciting....Oh and we should also hear about the Northern Louisiana Project as well by the end of the month.I just bought 5000 more at 1.39 and am going after more.This is cheap in this range and by the looks of things could become very explosive once people see how undervalued it is now... The Osprey