Current production (net interest)= 1,200 BOEP (840bopd + 2,380 mcfgpd)
Current POO = US$107+
Extrapolated annual revenue = (840bopd x 105poo x 365)+ (2,380 mcfgpd x US$7*/mcfg x 365)= US$38.3m
(*Note: Approx gas price = Henry Hub + 70%)
Gross margin of about 40% = US$15m
Assume USD = AUD Admin costs of about $1.5m So EBITDA about $13.5m
Cash ($40m) + 11.5 times curent EBITDA (11.5x$13.5m) = current market cap.
Even allowing for the natural decline of the current & planned wells - SELLERS....YOU'RE GIVING MOST OF THE 2 NEW EFS DRILLS, WILCOX, SCARBOROUGH (which alone could add up to $2/share!!!) + COOLONGATTA WELLS AWAY FOR FREE!!!
TXN Price at posting:
83.5¢ Sentiment: ST Buy Disclosure: Held
