Hey Ggwill, thanks for the feedback, especially on the Vali wells.
I based my valuation on running at the max flow rate and then multiplied the annual earnings by a PE of 8. But I think your way seems more appropriate considering the life of the wells in that scenario. What would you value each Vali well at?
I definitely agree with you that the value of the Nangwarry discovery is much higher when you include the total cash flow the well would generate over its life. I just wanted to be conservative in my valuation of the well by basing the calculation on 8 times annual earnings (as I know it may be difficult for an oil and gas company to achieve a high PE ratio). When I used the DCF method based on the 150/t per day production I calculated at least $0.24 per share based on Nangwarry alone (and potentially even more depending on field size). Seems like a great asset to own!
VEN Price at posting:
6.4¢ Sentiment: Buy Disclosure: Held
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