whno - a buy transaction at last, page-9

sorry I didn't have chance to listen to the brr but calculated purely based on the ann on 27/09/11(http://imagesignal.comsec.com.au/asxdata/20110927/pdf/01221979.pdf), which suggested 5 billion barrels as 'Mean Prospective resources' to be 'potentially recoverable' (the last page of the ann) and I assumed only 1% of this 5.48 billion barrels would become 'Oil in place'(including both producible and non-producible oil), and I used 40% as the recovery factor. i.e. 40% out of the 1% of the 5 billion barrels were recovered, and then WHN would farm out 70% retaining 30% interest, then multiple by the oil price, in this case I applied 50% of the current price of $80 dollars per barrel to be $40 dollars/barrel, this would come to value at this:

5,480,000,000 barrels x 1% x 40% x 30% x $40 = $263 million

then divided by number of shares outstanding (approx 1.2 billion)which giving out approx 21cents/share

Look, I'm no oil expert, this might be my wishful thinking, but by looking at our prospects and the ann so far, I still believe we are massively undervalued, and if someone could convince that my discount rates (1% POS,half price oil sales etc) are too conservative (which I'm sure many WHNers would think that) the figure would well noth of 21c/share.
(how about 5% of POS and use normal oil sales price of $80, then it would be $2.19 per share compared to our current penny figure then. nah....too wishful, too wishful am I? :-)

oh btw, I read through the annual report last night and further assured myself that our company is in good hands and we are heading to the right direction, a very bright future.

Good luck to all WHN and WHNO holders