BPH and BUYI've been giving people the heads up.
The ACCC is putting massive pressure on the government to green light gas projects in the east. BPH and BUY are just waiting on approval from NOPTA office to drill the biggest gas target seen.
BPH own 23% in Advent
BUY own 15% in the PEP-11 well they are drilling
This is 6TCF and 30kms away from Newcastle
it is the biggest gas drill Australia has seen in years and it is going to happen later this year
When STX and WGO found 1TCF the project valuation got to around A$1Bin.Would 6TCF find then be valued at same A$6BN?How do you work back then to get a fair NPV?20% COS chance of success on $6Bn find$1.2Bn probability value. BPH 23% = $273M BUY 15% = $180MLast time they drilled this and missed the formation but BPH got to a valuation of $300M
They are currently worth $2M and about to redrill the target with much higher gas prices
Watch these over the next week for potentially massive moves
