Somebody recently recommended this stock to me so I had a little bit of a run through the numbers on the catahoula lake project. If PLX bought the Lamar property for $550,000, production is currently at 35 bopd, NRI is at 37.5% and oil is at $80 then the annual pre-tax cash flow would be 80*35*365*.375 = US$383,250. If you add the value of the disposal wells, production facilities, infrastructure and equipment. Subtract the value of the management salary increase. Isn't this project still NPV positive for FUT?
I guess my question is why has there been such a negative reaction by the market?
FUT Price at posting:
0.3¢ Sentiment: None Disclosure: Not Held
