Thanks Stumpy, I think am getting similar values. My model is spitting out NPV just shy of $AUD300m for the 15mmbo. A success with Cervantes, may allow PDNP booking of up to 25% of the 2P, therefore 3.75mmbo assuming the well is flow tested and no OWC. With a risk discount of 15% should book value of $AUD22m net to MEL and book PUD (RF 50%) of about $AUD38m assuming mapped structure doesn't change much from the P50 areas. Id say the potential to add $AUD 60m of resource value to the SP is reasonable.
MEL Price at posting:
2.5¢ Sentiment: Buy Disclosure: Held
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