Hi Spec Its seems to me that the RSC as it stands will have Roc...

Hi Spec
Its seems to me that the RSC as it stands will have Roc recoup its inv. even the the gross dollars received back from Bentara development will be greater than what has been invested, the fact the funds are returned over years means that when you take a NPV or DCF view of it that get back pretty much what the put in. If Balai moves t development , given wells are drilled and suspended, this will improve economic sod RSC for Roc significantly.

why they don't want any more RSC is one , because its a poor outcome given the work involved and two , the market does give credit fro returns not on their books. I think why the have provided an DCF figure of the RSC is so the market can add some value back for the RSC

in terms of the positives, it seems as though there is additional potential returns that are simply waiting for field development approval so they can be moved for resources to reserves.

also, based, it is very often the case that when a field outperforms at the start, reserves and production will tend to surprise on the upside. The lack of water cut through and having 33% of wells flowing naturally are very good indicators that Beibu will surprise on the upside. Roc did mention Cnoonc are more conservative than them so i think this has a lot of upside

on the production front, gibe the rate of prod they entered this year with, i find it almost impossible that pre will be any near 6500, Very likely to be on the upper end. The rates of production in Beibu obviously have not diminished much if 5 wells are still on natural flow.

I think the year will see some resource to reserve conversion, perhaps 50-70% of production. It will also see rapid cash flow accumulation. Capex will be almost 40m lower tun last year, yet revenue should be similar , if not slightly higher.

I think Roc will adds some opportunities this year and I still expect it to mvd towards the 60s in the next few months