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

To: Little Engine who wrote (5964)	7/24/1998 9:24:00 PM
From: eric deaver	Read Replies (1) \| Respond to of 11684

Earlier today, I posted my first try at valuing the company on SI solely based on what we currently know. This is my final edit to that calculation. might want to read both posts together. I found out that Lincoln County has an average of 3575 tons of coal in reserve per acre. Raliegh County has 4354 tons of coal per acre. The average of these two is 3964 tons of coal / acre. So what...well multiply by 2600 acres and guess what 10,306,400 tons of coal on the average. Just what the original PR said. Well lets apply 400 scf CBM per ton From: oil.server4.com and we get a totally different valuation from before: Additionally, I determined the average proved natural gas reserve per acre for PETD and Statoil. We are talking 381 - 588 thousand scf per acre between the two companies. This changes my earlier calculations as follows: Now I know we have a different mix of reserves here but just the CBM ALONE is worth $2.75/Mscf or $11,000,000. This is 6.88% of the cashflow of PETD as a whole. At PETD price between $4.00 - $11.00 over the past 52 weeks, this is a price per share between $0.27 to $0.75 JUST ON THE CBM reserves (after production begins but after accounting for development and production costs - as well as cost of money). If the coal reserves estimated by the USGS can be believed, then I have seen enough studies of CBM content of WV coal to believe and actually confirm that this material is here. I would like to take this one step further and estimate 1.25 billion scf of gas on these properties based on the net proved reserves / acres of PETD and Statoil. Now with the CBM we are talking about $14,437,500 gross revenue value. This is about 9% of PETD reserves as a whole. Now we are talking $ 0.36 - $ 1.00 / share after production begins. This is totally ignoring any oil (probably not much there) and coal (we know that has value and a great deal but then we would have to compare that value against a local coal company - apples to apples.) They MAY add another $ 1.00 / share - I truly do not know as I have not done the analysis. So I think very conservatively speaking we are looking at a minimum value of the current price (absolute minimum) and a very real and conservative potential of $1.35 - $2.00 / share as we start production. This is just based on what we know to date for the original 2600 acres. Another MAJOR point to keep in mind. Each ton of coal over the 10,000,000 tons first estimated (not recoverable coal - straight ton of coal present) in the southern WV properties represents about 0.4 thousand scf coal bed methane to the reserves. This could really add up as well. Eric (feeling very, very certain w/ these numbers)