10c to 20c of pe value per well...

Looks like a significant discovery here...

Nearby wells have been recorded at high flow rates for prolonged periods, so such flows are not uncommon, and not always expected to drop right off...but I am more inlcined to assume a stabalised rate of production in the 50-100bbls per day range.

This gives us an annual profit range, per well of somthing like AUD$1-2m...or profits of about 1-2c per share fully dulited.

A PE of 10 gives as a value of 10-20c per well.

With two more wells permitted to be drilled (I assume immediately now), we could be facing near term production capacity (3 wells) some 30-40c per share.

This is not their only asset mind you.

Cheap...still very cheap...but we need to be minfull of the markets short-term money needs.

Heads...I've been in (from the open)...and out...and now back in and likely to hold for a bit.

Options...again in (from the open)...and out...and back in and again and likely to leave it now.

Real value here...but the market's immediate needs will rule short-term prices...whether that results in higher or lower than current prices (21c) will depend on the numbers involved.

Nice train to have a ticket at current levels however.

Cheers!