No-but the expenditure is quarterly (i.e.over 3 months) and the income monthly so I have added $230,000 (pre-Joann monthly net income) to $145,000 (additional Joann monthly income) x 3 to give quarterly income of $1,125,000.00.This should increase as the choke is optimised and as Brasher comes back on-line.
Fair comment markeewan but while Heintschel isn`t a resource yet it is looking like valuable long-term income.Yet to see what is at Joann and how big this might be or how fraccing may increase flows from existing Heintschel wells so even without further discoveries or even step-outs there is upside.Add to that the prospects in the context of 10 out of 11 to date, Woppa, the 3D and the potential to participate in one well a quarter without making a significant dent in an $8m dollar cash pile and in the spectrum of oil plays this looks low risk/high potential and perhaps worthy of a more generous rating than a p/e of 4 given that most shares of similar market cap don`t have a p/e `cos they don`t have an e.
BUR Price at posting:
6.0¢ Sentiment: Buy Disclosure: Held
