The capital structure is ok at 22,310,000 Shares on issue; 14,275,000 Options on issue so growth potential is reasonable should they hit oil.
The thing that isn't so enticing is that they only have 2 EP's which look ok initially but seismic as always will be critical in assessing what these permits hold and ultimitely the companies potential. I cannot see substantial blue sky here just yet but there is some good growth potential. Awaiting some decent defined seismic.
The main contributor in choosing to look at RIA more closely is that the permits are in the Canarvon Basin.
Specs on this basin,
- 650,000km2 closure - Approx 619 exploration wells - 128 discoveries (about 21% strike rate or 1:5) - Average well depth of 1965m - Exploration well density 1.1 well per 1000km2 - Initial reserves of approx 6 billion barrels - Reserves per exploration well total 9.8mmbls - Indexed to the cooper basin (100) the Canarvon is (544), comparison of Surat (5), Perth (94), Amadeus (227)
(source J.Heugh - CTP).
Although exploration success is limited at Canarvon (21%) in comparison to the cooper (45% succcess rate) the reserves recovered are quite substantial. With a 30% interest, and 50% interest in respective permits hitting an absolute minimum of say 30mmbls per permit would be a nice booster to the company should they not dilute any further however at present I see much greater opportunity in other oilers as RIA still has a long way to go. Will be intersting to see the seismic.
RIA Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
