Blue Gem Coverage of Renergen, page-2

Looks like Blue Gum Research values RLT at AUD 4.21 at today's exchange rate. This equates to a market cap of AUD 495m. Current market cap for reference of AUD 188m appeared well undervalued to me and others have commented the same

Blue Gum Research appear to have factored in the current confirmed reserves for a conservative valuation and not included potentially huge upside from the current drilling to increase the reserves in the near future




In ground value for these confirmed reserves by my calculations

Natural Gas

1P = 40.8 bcf = USD 0.11b
2P = 139 bcf = USD 0.38b
3P = 284.2 bcf = USD 0.77b

Helium
1P = 1 bcf = USD 0.28b
2P = 3.4 bcf = USD 0.95b
3P = 6.9 bcf = USD 1.93b

** Assumptions
2.7 USD per MMBtu of natural gas
280 USD per Mcf of helium


In terms of adding additional reserves to this for Stage 2 the report states "Importantly, the Virginia's Phase Two could be multiples the size of Phase One and unlock staggering value in the group"

Per the following the reserves could be increased many multiples from the prospective and contingent resources