The jump in SP was yesterday. This is a very positive announcement however it's certainly not a $600m increase in valuation.
1 Petajoule (PJ) = 1,000 Terajoules (TJ) = 1,000,000 Gigajoules (GJ). Using the WGO corporate activity metrics from early 2023, it would imply COI's 2P reserves are worth $388m ($1.98/GJ) versus a Market Cap of $192m today. I do note however this valuation was on the West Coast, and the East Coast Gas supply/demand dynamics are tightening more and more as weeks pass which makes Comet's gas more compelling IMHO. If Comet converts some of the 3P into 2P we'll then experience a meaningful SP re-rate.
We still await the Jemena Pipeline FID which multiple parties have confirmed is imminent..
From my experience, I feel meaningful news could come from the following - a GSA or 2 from gas buyers - STO bidding for further equity in Mahalo JV, or the Mahalo North tenements - STO corporate action - an upgrade in 2P Reserves - corporate action from a gas user such as a Rinehart, Orica, Bluescope etc etc
COI Price at posting:
19.0¢ Sentiment: Buy Disclosure: Held
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