belait upside

Sorry - I am not a serial poster but as a new holder, I have been doing some reading and thought I would throw up a few points for discussion.

Belait which will be drilled in a month or two

Two wells each with 1 -2 million recoverable -39% ownership - that's 390K to 780 k barrels per well
At a very conservative NPV of $10 per barrel that's 39 million to 78 million per well or 24.8 cents to 49.6 per share.

Two successful wells with 2 million recoverable each will add 98.2 cents per share. Mind you these are appraisal wells not exploration wells and therefore chance of success much higher

Although I doubt the market would fully recognise the full value of any discovery, with a range of 24.8 -98.2 cents per share even a 50% recognition of value would result in a SP appreciation of 12-46 cents per share upon success

Now if we have two dusters, total cost of 6.4 million or about 4 cents per share. Massive upside and very limited ed downside and these aren't even the big targets.

I think the above shows the benefit of the limited shares on issue. I think we will have alot of traders jump in near spuds of the various drills, particularly for the bigger targets

Please fill free to comment, agree disagree discuss etc and also tell me to shut up if I a overdoing the posts