i've read through the report and getting a better idea of the wells etc etc .. i realise most of you would know this buy anyway...
1. When Snatcher 1 & 2 start producing this should impact on Santos as the oil that Santos is drilling is largely coming from the North West , the Liberator Lead. Is this correct?
2. When can we expect a drill to the West as it would seem wells on this side would hit oil.
3. With Figure 2 what exactly do the red areas indicate?
4. Snatcher 1,2 and 3 will provide circa 288,000 barrels to ITC based on Proved Reserves. If the margin is $50 per barrell (not sure of this?) then revenue for life of these three wells is $14.4m. Based on Proven & Probable Reserves, where the drainage area is double, this doubles to $28.8m. The market cap of ITC stands at circa $45m so need to consider upside..
5. Further drilling to the West is important. Other wells around Snatcher 2 and 3 look highly probable. Doubling the amount of wells producing from 3 to 6 would yield earnings (if $50 per barrel margin is correct) circa $57.6m - discounted back to today's dollars it would be less. Current market cap is $45m and on the face of it this seems fair and i dont think the price will run away for some time until more wells are drilled and reserves proven.
What's everyone's thoughts on this - with detailed figures etc etc. Also keen to hear what the red areas represent on Figure 2.
- Forums
- ASX - By Stock
- ITC
- Ann: Progress Report Snatcher Field Update
-
- There are more pages in this discussion • 13 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add ITC (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
SER
STRATEGIC ENERGY RESOURCES LIMITED
David DeTata, Managing Director
David DeTata
Managing Director
SPONSORED BY The Market Online