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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: architect* who wrote (88896)	8/7/2007 7:14:42 PM
From: energyplay	Read Replies (2) \| Respond to of 206148

Getting about 3,000 barrels per day into production should generate about $ 140,000 per day in cash flow, Assuming 60 USD net per barrel and about a 20% royalty. That's 4.2 million a month, about 50 million per year - about 60 cents per share cash flow. Eight times the 60 cents cash flow would be about $4.80, which seems to be the current range for BZP. The oil production could happen even if the gas to power plant, or the power plant is delayed. The gas to power plant requires an offshore pipeline and a few other infrastructure developments. Once both the power plant and oil production are going, there will be plenty of cash and considerable opportunities to develop more resources. Is there a rational reason BZP is well under $5.00, other than some people being forced to sell ?