Has anybody made any money on this?, page-49

Morning All

Haven't said much lately. Mrs OOO reckons that's merciful.

To be honest, I'm sick of much of the crap posted here - 'we're all rooned', 'oil is finished', 'too many shares', etc. One bozo even said there was no way out from here; that dilution would continue to maroon our SP at these levels or below. FFS, people.

Can't be bothered with exact numbers, but broadly ...

> The market is valuing us on 15% of Cairn's 560-whatever million, or 85m barrels. Plus cash and probably nothing more.
> Our market cap is roughly $US320m , or let's say $US3 a barrel plus change.
> FAR is funded for a year ahead in which not much will happen, so chances of a CR are miniscule.
> In that year, RISC will report, the JV will update its estimates, and FAR will farm out Gambia (I suspect at free carry). All of these events will happen and will be value accretive.
> Other events might happen. The oil price might increase, FID might be declared by then, FAR might win more acreage (hectarage just doesn't work, does it), PE might be concluded and we might even win (although I have a bad feeling in my waters) and we might even have drilled A2.

Are you seriously telling us none of this will shift our price? Really?

It will certainly shift the needle on the value gauge of the majors that are watching this new basin with growing envy and eagerness, and at the end of the day that's the valuation that might well define our returns on this investment. Who knows, one of them might be willing to pay more that two bucks a barrel for easily extracted high-quality crude.

OOO