The Next CVN, page-18

Just looking at a broker report about CVN and they state

"We look to the nearest peer in FAR as a relevant comparison, noting that the market ascribes A$9/bbl for its net (post Govt carry) 2C discovered 70mmbbls contingent resource;"

So if the 2C is 640mmbbls and our post Govt carry is 13.7% gives us 87.68mmbbls (must be using CNE 2C) which gives a MC range of $630m to $789m or 12c to 15c hence the support at 12c

So if Samo hits oil of 825mmbbls 2C and I think the governments get 20% means we end up with 32% of the total being 264mmbbls adding to the MC by an additional $2,376m or 45c per share

Then you use the same for the additional 35% gives FAR between 178mmbbls and 205mmbbls or $1,602m to $1,805m less 600m (including cost) to our good friend at WPL and we end up with $1,002m to $1,250m being 19 cents to 23 cents per share

So someone has looked at FAR and used its MC to workout the price per 2C barrow of oil and I have then used that to work back to the current SP (genius!) and then assigned the same value to other assets: sounds fair if the current SP/MC puts a zero value on PE and Samo.

Anyway Samo and PE are just pipe dreams!

Back to reality once you take the risk of SNE into account you cannot justify a price over 12cents which is the same price as my current order for 100K shares.

So lets stop overpaying for FAR.

DYOR

Zip OFL