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10,642 Posts.
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11/12/13
11:24
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kk was 36% of argonauts 57-61 valuation, say 60
say 60*0.36 = 21.6 cps of argonauts valuation was for kk
so just adjust that 36% up by the improvements from this independent seismic result
596/250 = 2.384 improved bbls estimate
8.5/7 = 1.21 better risk assessment
bump up argonauts kk estimate by the improved volume and risk
2.384*1.21*21.6 = 62.5cps
an increase of 41 cps on the valuation
so our target should now be around a dollar pre-drill. On top of that the upside from spooners estimate if the whole of the basin is similar.
good buying opportunity
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