Value of Kingia and High Cliff Reserves, page-9

So I looked at some typical market transactions, and if the new gas reserves come out even at 1 Tcf, as 2C reserves that might add $100M of market cap to AWE. The more expected amount of 290 Bcf would then by interpolation be about $29M AUD of additional market cap. Neither of those moves the needle very much when you already have a $600M market cap.

So for this new find to make a real difference to the share price, they need to become 2P reserves. Using your number, 1 Tcf of 2P reserves are worth $1B of additional market cap, which is quite a substantial (more than doubling) of share price. Can you please show us how you derive that $1M per Bcf number you are using? Does your calculation take into account the relatively higher price (still around $8) for natural gas in the Perth region?

This looks like an excellent place to make entry to AWE. Stock is coming off a nice base and the above analysis suggests within a year if they can convert to 2P reserves there could be a substantial price movement.