Ann: Investor Presentation - Gold Coast Investment Showcase, page-50

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graydog

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26/06/24

17:19

Post #: 74498027
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Originally posted by danpech: ↑

Hi @graydog

MAY have a fairly long way to go before they can start their FFD.. still much is unknown about their resource, but at ~19 API, the oil is quite heavy so will trade at a discount to WTI, but being a conventional field, the decline rates will be less steep than the BRK wells.

They went to 18 cents on discovery and I would put them at the appraisal stage. The oil in place is huge at several billion barrels , but the primary recovery is quite low, under 5% I believe which is why the . I'm not up to speed on country fiscal terms, FFD costs, infrastructure in/ around the field.

I don't think you are missing anything, but there is more " Blue Sky" potential with MAY which is why I suspect their market cap is so high compared to BRK.

If they can make it work I can't see why they won't be successful but they are behind BRK in the development timeline.

Talking about a timeline, below is the old bath tub chart of a typical track of a mining company moving from exploration through appraisal , development and finally production. Applies to oil and gas companies as well.

View attachment 6276286

Should be fairly easy to see where BRK ( and MAY) are sitting and I would say the BRK share price has tracked the path reasonably accurately up to now.

View attachment 6276302

No guarantee BRK will follow from it's current position but this is a pretty well trodden path for most miners and oil/ gas producers so I guess we shall see.

Cheers

Dan

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Hi Dan .
Thanks for your assistance, very knowledgeable as usual . Hopefully BRK or SHE can climb a reasonable amount . Cheers Graham

BRK Price at posting: 1.2¢ Sentiment: Hold Disclosure: Held
5 Upvote

0 Great analysis

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