re: Ann: RAI - 31 December 2012 Interim Finan... strauss,"If...

re: Ann: RAI - 31 December 2012 Interim Finan... strauss,

"If they get Cadlao production from a pipe dream to reality then we are talking 10c+ as Sid pointed out 16% carried interest could still be 1600bls a day of oil"

I think that is a bit of an understatement.

1,600bopd is about ~$45M production revenue per year.

10c share price is a market cap of about ~$42M (including the second tranche to be issued to Albers).

Normal valuations of companies is my experience are 3-4 times of the annual revenue.

Also, RAI will very shortly have close to $10M cash after the dispute settlement and the second tranche issue to Albers.