Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Joe Copia's daytrades/investments and thoughts -- Ignore unavailable to you. Want to Upgrade?

To: Russell Gish who wrote (3860)	5/31/1998 1:44:00 AM
From: Steve	Respond to of 25711

Russell, I think the point is that after all the fuss not one instance of illegal activity has been uncovered. Oilex is continuing its swabbing program they are continuing their infill drilling program and will soon be developing their West Virginia properties (coal seam methane). Their average royalty interest is well above 50% on their properties and in some cases is 100%. The leases acquired by Oilex with the assistance of Allen Burditt are high quality leases with favorable royalty interests. Good negotiating on the part of the Oilex team, IMO. With respect to Caye Chapel and the Oilex consolidation it is important to keep in mind that Caye wants to provide fair value or a premium for Oilex assets (I think they could be worth as much as $32 million (NPV)). To accomplish this without excessive dilution to Caye Chapel stock Caye needs to be trading above $4 a share. I think a fair valuation for Caye today is about $7 a share. (I base this on the Great Plains acquisition and the McCormick acquisition as well as their ownership of 800,000 shares of Titan Energy.) With the small float Caye can run up nicely. With aggressive buying and long term investors holding, the stock can be nicely supported during the transition to listing on the small cap Nasdaq and the Oilex consolidation. So net/net what are we looking at... a gain of $3.80 a share for Oilex shareholders and a gain of perhaps $6.50 a share for Caye Chapel shareholders. Not bad for a days work.