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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: E_K_S who wrote (42134)	4/3/2011 9:32:13 PM
From: Paul Senior	Respond to of 78517

Lucas Energy. Thx for the analysis/update. LEI says in one part of their recent presentation that they estimate net asset per share at $5.98 based on 13.M sh. Elsewhere in the presentation, they say (as you do) that shares out are 16.6M. My intent is to hold on and not sell anymore until at least that net asset value based on 16.6M. Which is $82M (from presentation)/16.6M = $4.94. (Stock closed Fri. at $4.05) I don't know terms of the agreement with MRO. If there's a "make whole" aspect, at some point LEI will have to cough up money or barrels to MRO to pay for some part of MRO's development costs. I didn't read anything about an override, so I'll guess that at some point LEI also has to share maintenance expenses with MRO on these wells. Still, the deal seems very positive for LEI as reflected by the stock's sharp rise after deal announcement.