I've reposted this old post of mine for the newbies...This is...

I've reposted this old post of mine for the newbies...This is for one well only, so if they hit oil around estimates ,sp will obviously start to factor in potential etc


Hi all. GGp holder here so I guess we're in the same boat, just varying risks I guess 'cause vil is all or nothing looking at their equity.

However, If they hit a good strike of oil say 5 years worth, my basic calculations tell me on 1500 bopd X 50 % with say roughly $25 profit margin pbo. Daily profit 18750 X 320 average pumping days=6 MilPA .

So basically,vil, with a market capital of around 14 mil at the moment (roughly), for each 2 years they can produce from Fausse they will multiply the shareprice by 1 factor .They've stated 1500 bopd.(480000 PA) 10 years production (4.8 mil barrels )=60 mil mc= sp 11 cps. They've stated they could be looking at 7.4 mil total so 3.7 mil barrels to vil equals sp of just under 10 cps. But I imagine the price would go alot higher if they get these results. You know the market )

Vil is a gamble ,but if they hit the quantities there after its huge for investors willing to have a crack.

I took insurance and went with GGP as they are already producing )

Hope this helps a bit and GL to all

Budfoxx

P.s im now more heavy on vil than ggp as I believe much risk is gone on prelims