by now, we can finally, imagine....31 Oct 2013 00:06
Shore Capital recently issued a note on Enegi (ENEG), at 8p now capitalised at around £13m. Shore Capital's "risked" or discounted valuation is 33p per share. Cash is OK for the foreseeable future, the Newfoundland prospects, by now, are clearly bonging along, County Clare offers a prospect and the, by product, namely Buoy Technology which causes dead (i.e. uneconomic) oil fields in the North Sea to come back into production is patent protected and will bring tens of millions of barrels of oil into Enegi's reserves at a valuation of $10 and more per barrel. Finally, the Jordan-based Dead Sea drilling deal with the Koreans is coming along - albeit slowly in the light of political problems.
Newfoundland alone could be worth a multiple of the current price, as Black Sprice, the driller, has agreed to spend up to $120m on the licence areas for 60% of the yield as, also, could the ABT operation. Because of the potential you can, take your own word for it, and the more, you can imagine, a share price in excess of 100p and longer term 200p.
Well, I, really get it.