Agoracom Blog

Omagine (OMAG:OTCBB) – $US 1.5 Billion Oman Real Estate Project Just Weeks Away

Posted by AGORACOM at 11:09 AM on Monday, May 12th, 2008

Good morning to you all. Following in the footsteps of the Dubai real estate success story, Omagine, Inc. (OTCBB: OMAG) announced today that the Government of Oman approved commercial terms for the Omagine Project – a $1.5 billion + real estate project in Oman. View the press release here.

The project has been in the works for a while and has received plenty of attention from the media during that time. However, closing now appears imminent, which would be a big coup for Omagine and great for small-cap / micro-caps everywhere. I say imminent based on the comments of Omagine President, Frank Drohan, from today’s press release:

“Our attorneys are now concluding the Development Agreement with the Ministry of Tourism and we and the Government look forward to signing it within the next several weeks.”


Here are some of the highlights of the project:

  • As presently planned, the Omagine Project will be located on approximately one million square meters of beachfront land facing the Gulf of Oman just west Muscat — the capital city of the Sultanate of Oman and near Muscat International Airport.
  • includes several hundred thousand square meters of residential property that will be developed for sale and significant commercial, retail and hospitality elements are also included.
  • The Omagine Project is expected to take between 4 to 5 years to complete. The projected financial model presently predicts an internal rate of return (“IRR”) for the Omagine Project of 20%
  • Net positive cash flow in excess of USD $600 million (the “Projected Cash Flow”) over the five year period immediately subsequent to the signing of the Development Agreement. As of the date hereof, the “net-present-value” of such Projected Cash Flow is projected to be approximately USD $300 million.
  • Omagine owns 58% of the project.
  • Consolidated Contractors Company Oman LLC (CCC), which is the local Omani subsidiary of Consolidated Contractors Group S.A.L., will be responsible for all construction activities. Consolidated Contractors Group SAL (CCG) is a worldwide organization with $5 billion in revenue and employs approximately 125,000 people.
  • An investment arm of CCG will invest $US$49,426,000 in exchange for a 12% equity stake.

Omagine closed at $US .90 on Friday and is now trading at $1.10 as of 11:30 AM. At that price, Omagine has a market cap of ~ $US 50,000,000.

DISCLOSURE: Omagine is an AGORACOM client, so assume we are completely conflicted and conduct your own due dilgence.


Comments are closed.