conversation with ross w today, page-45

Hi Oliey456

You are right, eventually the value of INP will be based on the following

1, Total size of the field

2, Estimated recovery factor

3, Flow rates per well

4, Decline rates per well

5, Oil price

6, Drilling cost per well

So what do we know.

1, Total size stated by RW to be 120 million, my belief and research indicates it might be over 250 million.

2, Recovery factor, looking at Tirrawarra oil field around 30% using modern extraction methods with over 75 well producing.

3, Flow rates depending on reservoir quality between 150 to 500 per well per day

4, Decline in flow rates - not much to start with due to gas re-pressuration, eventually assume 10% per year.

5, Oil looking to go high, produced oil of high quality and sold at a premium to TAPIS.

6, Drilling and completion cost, around USD 3.5 million per well could well be cheaper.

So what are the major risk?

1, Oil field smaller than stated or unable to produce, maybe so but based on my complex NPV 10% financial model INP should be currently worth between 4 to 10 bucks, so there a lot of this risk priced into the share price already.

2, Oil price collapse - difficult to see

Summary

Unless I really missing something I think we have limited downside and huge upside.

The key will be information on flow rates and Independant report.

Would welcome your response.


cheers

PC43