0.3-0.5c has been the trading range where all the volume has...

0.3-0.5c has been the trading range where all the volume has been in the previous few months.

You'd be disappointed if post recap MHL opened lower.

You'd be happy if it opened higher.

On fundamentals Trinidad is great value and will provide instant reward followed by linear growth as we expand.

A simple scenario would be if we raised at current sp (0.4c) and we raised $90mil.

We currectly have 4bil shares and market cap $16mil

We would have 26.5bil (ie 22.5bil + orig 4bil) shares and a new market cap of $106mil.

Trinidad from day 1 will produce 700bopd. Conservatively bringing MHL 90% of 700bopd x 330days x $35/bbl = $8mil/year.

BUT we know the plan is to ramp up production to 3500bopd. We know we get the inventory of SOCA which includes drilling rigs and personel.

We will have cash in bank.

We will be cashflow positive.

Its obvious we can justify that market cap and then some IMO. Ofcourse the equation changes if shares are issued at a discount(as expected), but it is realistic to think the shares will hold up well.

To get you 0.7c figure, you would need market cap of about $185mil. Probably $200mil if cr is at a discount.

700bopd($8mil profit) wouldnt justify that. Maybe once we hit 1400bopd and if Fury gives us something, then we could see 0.7c

It wont take long to ramp up to that level. Probably worth holding on IMO.

Once we see exact details of the CR we will know more. But at this stage it seems MHL has alot of growth potential in a relatively short timeframe.

For MHLO, with minimum 26.5bil shares on issue and needing an implied sp of 2.5c, you would require a market cap of $660mil or more.

Even fully ramped to 3500bopd, making $40mil profit we cant justify that cap. IMO only.

I think the heads will be a great buy in the 3-6month timeframe.