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Microcap & Penny Stocks : MTEI - Mountain Energy - No BASHING Allowed -- Ignore unavailable to you. Want to Upgrade?

To: EubieV who wrote (4532)	7/6/1998 11:22:00 AM
From: eric deaver	Respond to of 11684

Great summary - bears posting to MTEI Info thread: Several clarification points: Add Wayne and Kanawha counties to that list - similar reserves in these counties as well. AND You wrote: <<Let's take the conservative approach and run some numbers. Start with the $2.85 book value stated in the press release which does not factor in any other resource exploitation other than coal and natural gas. No oil, no lumber, no precious gems. At a conservative 25% of USGS underestimate, this would give us a new book value of $3.56. For Oil and Gas concerns not showing a profit, industry averages indicate a price to book multiplier of 1.5 (3 x for profitable companies). Let's be conservative and not even factor this in. Now add in the 8000 acres, which is roughly 3 times the size of the 2600 acres. Assuming that similar reserves are within the 8000 acres, we have $3.56 * 3 or a new book value of $10.68 based on coal and gas alone in West Virginia properties. Adding other exploitations on these properties would raise this value. >> It should be noted that I have found out that mineral rights do not include lumber. MTEI would only be able to exploit lumber on properties they own. Minor issue. Additionally, the above analysis does not include natural gas just coal-bed methane. Mark my words, the natural gas reserves will prove to be the most important resource once the reports are done, IMO. The first sentence above should read: "Let's take the conservative approach and run some numbers. Start with the $2.85 book value stated in the press release which does not factor in any other resource exploitation other than coal and COAL-BED METHANE." Natural gas reserves are an added bonus to the valuation discussed above. This can not be repeated enough. Eric