badly mauled, page-7

Hi Middy,

This is the quick calc I used for the first Raven well...

Gas flowing at 1500 MCF per day x $7 x365 days = $3.83 million
In addition 40 barrells condensate per day x $70 x 365 days = $1.02 million

Total income $4.85 million per annum x 40 % Pryme’s Interest = $1.94 million per annum per well

Multiply by P.E of 12 = $23 million. Divide by total shares & options, 110 million
= 0.21 cents per share ( hmm that’s US cents so actually A$ 0.26 )

So multiply by 10 wells in Raven flowing at same rate equates to $2.60 per share….

However given the size and consistency of the Raven prospect and the fact that more acreage may be leased, its highly likely that there will be more than 10 wells drilled, I wouldn’t be surprised to see it at least double that… so whilst it may be drained quicker its all money in the bank.

Then start adding up all the other projects on board, Saline Point being drilled next week, Turner Bayou also due to commence, and especially the Atocha and Checkmate prospects due to be drilled next year with even bigger potential… so its plain to see at current shareprice NOTHING is remotely factored in for upside exploration/ production potential.

Cheers, see you!