possible value 6:81 per share, page-13

Hi defabstar

Thats not a bad number, here how I work out mine.

Current value = AUD 6.10

This price gives no value for further exploration success.

I am using a detailed excel spread sheet model developed for the Canning Basin WA, so the cost are slightly higher here than with the SA.

Assumption in Fiscal Analysis


Model time scale (years) 40.00

Development Cost (USD millions) 193.00
Operating cost (USD per barrel) 2.00
Total number of producing wells 50
Maximum annual oil production 3,736,779
Max daily production rate 10,238
Initial well production rate 250
Production decline rate 0.10
Cumulative production (million of barrels) 40.00

Oil Price (USD) 80.00

Net present value Excise Tax Regime After corporation tax

Discount rate NPV NPV
0.00% 2,217,919,130 1,651,981,871
5.00% 1,347,709,604 1,023,189,245
10.00% 889,233,698 624,611,095
15.00% 619,571,418 486,425,979
20.00% 448,713,548 357,420,645
25.00% 334,549,951 269,985,557

So in AUD the NPV 10% = AUD 1.1 billion.

Thus with 180 million share on issue = 1.1 billion / 180 million = AUD 6.10.

The key to this value is drilling and completion cost, oil price and flow rates per well.

Using conservative flow rates, (although high oil price?).

The key for me is they (INP) still do not know how big this oil field really is.

Look for T/O offer by end of the week? Bring it on STO.

Still a holder from sub 40 cents, a real ripper!!!

cheers

PC43