if we say the total value of the asset is $600mil, that is one thing.
but how long will it take to get the oil out? if you look at your news on the UK locations you will see wells in the UK have been pumping oil for 50 years.
if we say the same for this, thats $10mil P.A across all wells, minus production costs, minus tax's. or the money goes straight back into more drilling.
a well could cost $3mil to drill, and flow at $1mil P.A
remember the well keep slowing down, so by the time the well has paid for itself the income will have dropped substantially.
at the end of the day the stock will be valued by earnings or potential earnings.
if you dont know 1) flow rates / net profit 2) total volume of shares after dilution.
then it is impossible to value this stock.
look at AGO, how much $ are they sitting on? but they dont get valued by that, they are being valued by how many Mtpa they produce each year. I think its the same deal here
my guess is these guys are going to do the WA project to get a source of income, which they will re invest into the UK Project after, which will be 3+ years off.
just my thoughts
NWE Price at posting:
3.8¢ Sentiment: None Disclosure: Not Held
