facts

We need to look at this practically and look at the facts.

I have split the facts into 3 categories.

1. ASSETS AND MARKET CAP

There are 4 assets and a shareholding in BAS. The value driver according to HC scribes is the Derby Block. The last assessment of this asset was a Gordon capital report 8 April 2013. This is a quote from their report

"The most recent land transaction in the Canning
Basin (Rey Resources / Mitsubishi and Buru) implies
OBL’s 37.5% stake in the Derby Block has a
minimum value of $7.6m. We have updated our
valuation to reflect this deal and estimate a “fair
and reasonable” value for OBL’s assets of around
5cps “risked”, (high-side case of 13cps “risked”)"


Numbers from ÓBL presentations:
Backreef Area
PRMS Prospective Resources
Product P90 P50 P10 Mean
Oil-in-Place MM bbl 3,063 6,645 12,333 7,302
Recoverable Oil MM bbl 139 391 1,008 510
Recoverable Solution Gas Bcf 119 370 1,073 517

Derby Block USG / USO
PRMS Prospective Resources
Product P90 P50 P10 Mean
Gas In-Place Tcf 31.8 107.4 357.8 164.7
Recoverable Gas Tcf 4.8 18.7 68.8 31.2
Recoverable Condensate MMstb 117.4 461.9 1,785.0 801.7

Not much has changed. OBL is now sitting at 1.6c and a market cap of 10 million.

Scribes have put all the data and numbers for all assets on HC and most people appreciate it and others call it ramping.

2. OBL MANAGEMENT

They have a plan for all assets and after having discussions with management, they are confident assets are farm out ready and OBL will be able to do this and perhaps get a cornerstone investor. The deadlines are weeks/months and the aim is for the OBL share price to be much higher than 4c for when the options become due in June this year.

3. MARKETING AND COMPARISONS

OBL's Derby and Backreef block can be compared to Buru Assets and the numbers in section 1 from independent experts are huge. Numbers are in all the presentations and are farmout ready. There is a massive opportunity to market to fund managers who want an exposure to the Canning Basin once the Derby block is awarded. NSE is no longer in Canning. My feel is that management believe that the share price will take care of it self once the derby block is granted and all the farmouts, cornerstone and ownership issues are sorted.

Overall it is frustrating for all of us who are bleeding at the moment. It does not help when there was a Native Title appeal and Greenrock selling their shares. If you have been a shareholder through all of this, the fact is those setbacks are nearly gone. Another fact is potential new shareholders or farminees want certainty. Once OBL is granted the block and is operator that is certainty. Funding support, cornerstone and sale of assets will bring in cash and more certainty (that is a fact).

So let's sit back, watch Greenrock get gobbled up and watch it all unfold. Not long to go!!!DYOR