2 billion barrels.....you do the math. CAK reported in the recent quarter a loss of $4.43 million on oil production of 200 barrels / day. 18,485 barrels / quarter. That a loss of $240 / barrel. Shareholders are subsidizing CAK operations. Even if Oyo #7 has an IP flow of 5k bopd, I doubt that CAK's term share of long production will increase by more than 380 barrels / day. CAK has something like 2 million barrels of 2P reserves. In Nigeria a 2P barrel of reserves is worth maybe $18 / barrel. IMO, CAK needs to discover a significant amount of oil and increase oil revenue by a significant amount to underpin the current valuation.
In a best case scenario Oyo #7 is targeting 3 - 10 million barrels (250k bbls - 700k bbls net to CAK).
2 billion barrels is a pipe dream. The Oyo oil field has underperformed all expectations , both reserves and production for the last 5 years, I'm sure that's why ENI sold their Oyo asset after investing $1.1 billion.
Agree! If well #7 comes in big, it's a safe bet wells #8 & 9 will also be highly productive. All the 'Big Boys' own blocks in this region. Look for buy-out or partnership with Shell, Chevron, Mobile etc. When that happens this stock will go to $8. - $10. OVERNIGHT! Huge upside potential here, and CAK is on the radar now. Daily shares traded increasing dramatically.