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Gold/Mining/Energy : Canadian Oil & Gas Companies -- Ignore unavailable to you. Want to Upgrade?

To: The Osprey who wrote (8098)	4/9/2001 9:37:54 PM
From: The Osprey	Read Replies (1) \| Respond to of 24910

Oh yes...I forgot.This pro-forma analysis re-printed from OEL.V thread in case some of you missed it.Please critique this for me in case I made some errors or overinflated my multiple factor on EPS or used the wrong figures in conversion to CAN dollars.I will appreciate it.Hey Hey!!!! I like this part...... "The oil and gas from the Crosby 36A Well alone more than triples the company's daily production, which is now expected to exceed 1,500 BOED". BOEPD=Barrels of oil equivalent per day MCF = thousand cubic feet mmcf = million cubic feet BOD = barrels of oil daily Revenue Calculation: 1500BOEPD X 25.00USD= $37,500.00/dayUSD is big paper for this little junior. Multiply this by 30 days and you get $1,125,000.00USD/Month in revenue.Multiply this by 12 and you get $13,500,000.00USD/year. Cash Flow Calculation: The President mentioned that the comapny is cash flowing 60-65% of revenue.That works out to: 13,500,000.00 x 60% = $8,100,000.00USD X 150%= $12,150,000.00CAN dollars/year cash flow. Based on 7,040,000 shares Outstanding this works out to $12,150,000.00 divided by 7,040,000 shares = $1.73 cash flow per share. Price /earnings multiple Now apply a multiple to this of a conservative 3 times earnings and you get a P/E Multiple of $5.19...The stock closed at 1.40???? Suppose the market is starting to realize how under valued this stock is. Heck at 1 X cash flow based on total O/S you get 1.73 and it is only at 1.40.See any upside here.....This is a no brainer but then again I have been saying this all along and been called a hypster.Figure it out for yourself and call and ask an oil and gas expert if this is undervalued.Don't take my word on it.Ask if this stock is undervalued.Better still ask your broker to do some work for you. The Osprey