Sample of how calc's work. This was for masss education purpose...

Sample of how calc's work. This was for masss education purpose only & discussed on the 22nd of Jan.

These are pre-drilling numbers. Will get more clarity after logging results.
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HC discovery means gas+condensate. Gas well is purely gas. Nearby wells have produced low amounts of condensate, hence the HC angle.

At this stage, translating Z-1 potential for in terms of cents/share (pre-drill) works as below,

Say Gas In Place: 18Tcf
Recovery: 20% (gives 3.6tcf) (this could b upto 70%)
MEO's equity: 35%
MEO's share of GIP: 1.26tcf or 1260 bcf
Gas price of $0.10c/mcf (pre-drill)
Unrisked value of A$126m (ie 1260 bcf*10c)
Shares issued: 417.3million
Unrisked Value cents/share: 126/417.3 = 0.302c/share.
Risked Value: At 10%, we get 0.0302c/share.

On a commercial discovery, once field size & estimates are established, then the A$5 to $7 (current gas price) comes into the equation.

So MEO's share of, 1260 bcf (or 1.26tcf) times $7 gives us A$8.82b unrisked value, makes sense.

One can make the model complex as u want, however the fundamentals dont change.