The size of the Smith#1 find is still not known but from Peter Landau's comments in the Australian Investor (http://australianinvestor.com.au/magazine.aspx?id=3205) at least some calculations can be made.
"targeted production range of between 500 and 1000 barrels of oil as well as 8 to 12 million cubic feet of gas per day"
$5.749 at MMbtu $75 per bopd These calculations are gross of tax, ongoing operational costs and other onstream costs to get oil and gas to market.
High end = US$13.1m per year Middle of range = US$10.4m per year Low end = US$7.6m per year
Calculations
High end of the range 12MMcf (12000 MMBtu) = $68988 per day 1000 bopod = $75000 Total = $143988 Range interest (25%) = $35997 per day (x365 = $13.1m per year)
Middle of range 10MMcf (10000 MMBtu) = $57490 per day 750 bopd = $56250 per day Total = $113740 Range interest (25%) = $28435 per day (x365 = $10.4m per year)
Low end of range 8MMcf (8000 MMBtu) = $45992 per day 500 bopd = 37500 Total = $83492 Range (25%) = $20873 (x365 = $7.6m per year)
Range losses last year were AUD$4.4mil (about $4m US). Those losses will be turned around by Smith#1 which is not bad for the farm in costs of just over AUD$1. Once the rights issue is underwritten there will be AUD$9m in the war chest. Lot's of money swishing around to go after the main prize.
My boots are filled so I've changed by position to LT Sell.
RRS Price at posting:
5.4¢ Sentiment: LT Sell Disclosure: Held