Comparitively speaking, potential price increases in land values are chicken feed compared with OMAG's total activities over the next five years, which are forecasted to generate $600million of cash flow. The big money is in the buildout management and operation of the Omagine water front properties, and secondly, the profit margins on the building of homes, assuming OMAG is the general contractor of record.

Let's assume the sale of 3000 home lots averaging 5000 square feet over five years with the beginning average price tag of $75,000 per lot. OMAG pays the GOV. their specified price of $53,800, keeping the $16,200 difference (their markup), thus grossing $48.6 million with no price increases. If OMAG were able to raise lot prices 10% per year over five years, their gross profit would be $59.3 million, or a mere $10.7 million more from the price inflation. That's minescule in comparison to the projected $600 million of total cash flow.

OMAGINE is a magnifiscent and potentially profitable project, irrespective of lot price inflation. Besides, price increases are not necessarily healthy at the outset; they can work for or against the preferred longer term outcome. Lot price leverage is not the name of the game.

harrell