See RIU presentation.
The company has $6 million in cash which will be used to drill Emily East.
The Market cap is $22 million. Treating Emily East as a separate piece of business. The rest is valued at $14 million.
The Management Team are very experienced and use specialist consultants widely to increase the value of the project.
The company have used various geophysical techniques , building on the knowledge gained at Emily bluff, to build a case for Emily East drilling program. It is near field appraisal.
Without Emily East the NPV of the project is NPV after tax $802 million at 7%.
That is only 50 times what the market is valuing the existing resources.
Success at Emily East will result in an increases in resources and most likely an increase in NPV.
The other wildcard is BHPP Oak dam which is 10 km. Whilst Emily Bluff is targeting the sedimentary Tapley formation at about 400 meters. The story of the deeper drilling at 800-1000 and how it may relate to Oak dam is something for the future.
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