oil strike, page-8

2P reserves for this field (at this time): 1,000,000 bbls
BPT share: 750,000 bbls
Assume a forecast oil bbl sales price: A$100 and
Net back (production costs and royalties): A$65 bbl and
Australian corporate tax rate: 30%

Undiscounted cash flow from this field: approx. $34 million

Number of shares on issue at BPT: approx. 887 million

Undiscounted cash flow from this field: 3.8 cents per share.

Therefore, on a discounted basis the benefit of this new field (at the present time) is probably close to 3.3-3.5 cents per share.

A nice little earner for only one onshore exploration well!

The upside comes from that said in the press release this afternoon:

Beach Petroleum managing director, Reg Nelson said today, “This latest discovery, close to the Christies, Sellicks and Callawonga oil fields confirms our belief in the potential of this under-explored region of the Cooper-Eromanga Basins.”

“The region now deserves recognition as a significant oil sub-province of the Basins,” he said.

Reading between the lines, expect more discoveries in this area!