Expedition Energy (XPD)
Posted: Wednesday Nov 24 7:28:02PM 2004
xpd recently presented at sepac. The presentation can be reached by following this link http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=929940
Posted: Tuesday Nov 23 11:19:26AM 2004
The company expects to exit this year with net production of approximately 425 boepd not 150 boepd. Of course investors always have to be predicting in advance what certain developments will mean for a company. I agree that the present production profile does not warrant the share price. However, at 425 boepd, annual cash flow should be approximately $3.7 million or $0.20 to $0.25 per share. (according to my calculations). One also needs to consider that Expedition plans to add another 100 to 150 boepd in Q1 of 2005. That should increase annualized cash flow further to approximately $0.30 per share. Expedition is also debt free and has positive working capital of approximately $0.07 per share. Obviously there is still a risk as production is merely behind pipe at this time. As always, do your own due diligence and make your decision accordingly.