OK, so there is currently Nil value applied to 2 producing wells. Both wells should produce an income of approx. 6Mil pa. Given a PE of 15 = 90 mil.
Some value must be applied for the other wells at a discount price- as we do not know what they will be producing yet...
So we have a base value of approx 125Mil + 90Mil + 20Mil. As producing wells MUST be on top of the land value. As a producing well is generating an income. The PE will be determined by the reserves.
So in the ST we should have an upside of another 5-6c IMO.
Medium term determined by t\o bids and further producing oil and gas wells.
Very safe risk reward wise to buy at these levels IMO.
SSN Price at posting:
6.3¢ Sentiment: Buy Disclosure: Held
