If 100mb is the OIP and applying a 40% recovery, then 40% JV share is equal to 16mb of reserves. At US$20/barrel acquisition price, the MC of ERH should be around A$333m. Fully diluted for about 320m shares that would be about $1.05/share. Not back for the folks who saw the prize early. Well done here.
As always, the market gets ahead of itself with these things so a US$20/barrel is sometimes US$30/barrel to include upside. This could push the price to $1.50/share.
I'd set me exit target accordingly.
A hard lesson I've learnt is to not fall in love with your stocks! Makes it too difficult to exit!!
ERH Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
