sale of zola/bianchi prospects., page-171

Hi Auto,

Yep - but I am making a valuation statement of the asset. Net to TAP of course need to subtract any debt.

$30 bbl was only for 1P (fairly typical) and $15 bbl for 2P - what I wrote was

"...conversion from 2P to 1P PDP once platform gets producing (and a typical multiple of US$30/Boe). Might even get the 2C to 2P. My guess then is 6MmBOE of 1P PDP + 2MmBOE is worth US$225M or AUD$250M..."

The 4.500 boepd rate is shown by TAP to be fairly stable for what looks to be 8 Qtrs... I don't expect it to taper off quickly & neither does TAP - offshore conventional oil vs onshore shale (which is rapid decline)

Though the key is what happens with converting the 2C piece as to how that either sustains production or increases it (which I don't expect and hence why I think the flowing boepd multiple needs big discount).

I wasn't trying to give a SP value more a company value and let the reader come up with their own discounts and subtractions (e.g debt).

Really just a longer view on Manora value - don't really care if its TAP's hands or not - it will be developed and once the platform in place and flowing it will be valued on a Reserves basis first and foremost IMO.

So for me that backstops the company value - the rest (add cash, current Gas sales, no core assets and subtract the eventual total debt) is upside variable.

Not overly concerned on oil price - Reserves valuation is a long run metric (flowing boepd is not), depends if a buyer is primarily buying asset for Reserves or wanting to buy production for cash flow.