True Rsc has the potential to add a lot of value and I think we may see more recognition for it if the next two wells are successful , even if one of the two are then I think we will have a go ahead to developemt - current oil prices certainly enhances economics If anyone was able to value RSC it may be worth 100 plus milion m for Roc given the ultimate dollar size of the development . Roc has traded well below reserve value , well below sector PE average, well below price to cashflow average as it has had a volatile history . This means it has taken more time for the market to attribute the right value as it has a higher burden of proof than other oilers , even though it is essentially a new company with a new discliplined focus. Today it gapped up on strong volume , biggest volume in months , has the highest wrap in weeks and is threatening the 48 -48.5 resistance with more conviction and momentum , this I believe is the last hurdle before it finds a higher base in the 50s and 60s this year and as you point out that will still be undervalued , simply less so than today . I believe true value is around 80-85 on current assets and probably 90 plus with another 2 RSC successes . 240 reveneu achieved with bopd at 6400 . With an estimate average production of around 8500-9000 this year and a slightly higher oil price sonar this year a revenue figure of 320-350 this year is very achievable which is amazing considering market cap is just above 321
ROC Price at posting:
47.0¢ Sentiment: LT Buy Disclosure: Held
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