@Cryptical Envelopment
A few questions answered. Mostly positive. I'm posting a new model to include full dilution of all outstanding warrants and options. (there should only be 10 million or so shares not in circulation after Mondays deadline)
http://www.metalsnews.com/Metals+Ne...Exploring+and+Developing+the+Worlds+Poten.htm
Positives
* Up 18% since mention
*The first 5 wells projected @ 50m quarterly revenue by the VP would dial in our average sale @ 1450 MCF (This was in the range i predicted and much higher than the investor presentation that sandbagged the value @ crude prices of 280 MCF)
*60-70 ONLINE wells projected, not 60-70 attempts (each well only cost 500k, capex not an issue here)
*Full dilution 80 million shares (only potential reason for further dilution I could see is large land purchases/leases to expand past 70 wells, they have a large cash position with revenues coming online soon)
*Their target consumers have agreed to haul their own helium reducing capex.
*Well #4 started yesterday, results around 10 days or so. This will be the current deepest well and other rare earth gasses are expected.
Negatives
*4th QTR start of full production may be delayed by permitting
| Well Count | MCF BASIS | Annual Revenue Per Well | Total Revenue | Revenue 3x | Revenue 7x | Outstanding shares | Share Price w/3x Multiple | Share Price w/7x Multiple |
| 70 | 275 | 8,942,000 | 625,940,000 | 1,877,820,000 | 4,381,580,000 | 79,400,000 | $23.65 | $55.18 |
| 60 | 275 | 8,942,000 | 536,520,000 | 1,609,560,000 | 3,755,640,000 | 79,400,000 | $20.27 | $47.30 |
| 50 | 275 | 8,942,000 | 447,100,000 | 1,341,300,000 | 3,129,700,000 | 79,400,000 | $16.89 | $39.42 |
| 40 | 275 | 8,942,000 | 357,680,000 | 1,073,040,000 | 2,503,760,000 | 79,400,000 | $13.51 | $31.53 |
| 70 | 550 | 17,884,000 | 1,251,880,000 | 3,755,640,000 | 8,763,160,000 | 79,400,000 | $47.30 | $110.37 |
| 60 | 550 | 17,884,000 | 1,073,040,000 | 3,219,120,000 | 7,511,280,000 | 79,400,000 | $40.54 | $94.60 |
| 50 | 550 | 17,884,000 | 894,200,000 | 2,682,600,000 | 6,259,400,000 | 79,400,000 | $33.79 | $78.83 |
| 40 | 550 | 17,884,000 | 715,360,000 | 2,146,080,000 | 5,007,520,000 | 79,400,000 | $27.03 | $63.07 |
| 70 | 1100 | 35,768,000 | 2,503,760,000 | 7,511,280,000 | 17,526,320,000 | 79,400,000 | $94.60 | $220.73 |
| 60 | 1100 | 35,768,000 | 2,146,080,000 | 6,438,240,000 | 15,022,560,000 | 79,400,000 | $81.09 | $189.20 |
| 50 | 1100 | 35,768,000 | 1,788,400,000 | 5,365,200,000 | 12,518,800,000 | 79,400,000 | $67.57 | $157.67 |
| 40 | 1100 | 35,768,000 | 1,430,720,000 | 4,292,160,000 | 10,015,040,000 | 79,400,000 | $54.06 | $126.13 |
| 70 | 1600 | 52,025,600 | 3,641,792,000 | 10,925,376,000 | 25,492,544,000 | 79,400,000 | $137.60 | $321.06 |
| 60 | 1600 | 52,025,600 | 3,121,536,000 | 9,364,608,000 | 21,850,752,000 | 79,400,000 | $117.94 | $275.20 |
| 50 | 1600 | 52,025,600 | 2,601,280,000 | 7,803,840,000 | 18,208,960,000 | 79,400,000 | $98.29 | $229.33 |
| 40 | 1600 | 52,025,600 | 2,081,024,000 | 6,243,072,000 | 14,567,168,000 | 79,400,000 | $78.63 | $183.47 |
| 70 | 2100 | 68,283,600 | 4,779,852,000 | 14,339,556,000 | 33,458,964,000 | 79,400,000 | $180.60 | $421.40 |
| 60 | 2100 | 68,283,600 | 4,097,016,000 | 12,291,048,000 | 28,679,112,000 | 79,400,000 | $154.80 | $361.20 |
| 50 | 2100 | 68,283,600 | 3,414,180,000 | 10,242,540,000 | 23,899,260,000 | 79,400,000 | $129.00 | $301.00 |
| 40 | 2100 | 68,283,600 | 2,731,344,000 | 8,194,032,000 | 19,119,408,000 | 79,400,000 | $103.20 | $240.80 |
| 70 | 2600 | 84,541,600 | 5,917,912,000 | 17,753,736,000 | 41,425,384,000 | 79,400,000 | $223.60 | $521.73 |
| 60 | 2600 | 84,541,600 | 5,072,496,000 | 15,217,488,000 | 35,507,472,000 | 79,400,000 | $191.66 | $447.20 |
| 50 | 2600 | 84,541,600 | 4,227,080,000 | 12,681,240,000 | 29,589,560,000 | 79,400,000 | $159.71 | $372.66 |
| 40 | 2600 | 84,541,600 | 3,381,664,000 | 10,144,992,000 | 23,671,648,000 | 79,400,000 | $127.77 | $298.13 |
| 70 | 3100 | 100,799,600 | 7,055,972,000 | 21,167,916,000 | 49,391,804,000 | 79,400,000 | $266.60 | $622.06 |
| 60 | 3100 | 100,799,600 | 6,047,976,000 | 18,143,928,000 | 42,335,832,000 | 79,400,000 | $228.51 | $533.20 |
| 50 | 3100 | 100,799,600 | 5,039,980,000 | 15,119,940,000 | 35,279,860,000 | 79,400,000 | $190.43 | $444.33 |
| 40 | 3100 | 100,799,600 | 4,031,984,000 | 12,095,952,000 | 28,223,888,000 | 79,400,000 | $152.34 | $355.46 |