Dear Stock_Shark1,
The Company last reported in its Form 10-Q filed August 14, 2008 as follows:
Subsequent to the signing of the Development Agreement, the
Omagine Site’s value will be definitively determined by a
qualified independent real-estate appraiser and such appraisal
will be utilized by Bank Muscat in its discussions with other
financial institutions to optimize the Project Company’s capital
structure and to arrange the Construction Financing.
Management is aware that due to market conditions the value of
the Omagine Site (“Site Value”) has increased sharply over the
past two years and, provided such Site Value is sustained, this
increased Site Value will have a materially positive effect on
the Project Company’s future cash flows as well as its financing
activities.
Based upon the Company’s previous filings with the SEC, no formal valuation of the land has yet been made regarding the Omagine Project. The Company did report the following in April 2007 in its Annual Report on Form 10K-SB:
JOL has been informally advised by local real-estate
agents that the present value of the Omagine Site is in excess
of 100 Omani Rials (USD $270) per square meter or a total value
of USD $270 million.
Finally, please reference the Company’s comments in its Annual Report filed with the SEC on April 14, 2008 regarding cash flows and land value:
The sale of residential and commercial properties, including sales to
non-Omani persons plus the sharp increase in the value of the Omagine
Site over the last several years are the main drivers supporting the Project
Company's projections of estimated net positive cash flow in excess of
USD $600 million over the five year period immediately subsequent to
the signing of the Development Agreement.
Thanks for your question.
Regards,
AGORACOM
