Curent recoverable reserves estimated as 50.1 proved and probable 2P BOO.
Current yr production 14.23 BOO. Using very conservative 50 USD barrel for balance oil yet to produce as nett cash recieved and using parity on USD to AUD. you can estimate future undiscounted value. ( I'm not sure what prices are being done today for developed fields producing). Undeveloped probably would sell for closer to 20 USD.
50.1-14.23 = 35.87 and ppp share is 3.587 million BOO at 50 USD or 50AUD = 179.35 million AUD + 74.5 million they should have by 30th June 2008.
IE Nett value company works out as 253.85 AUD which works out as 43 cents per share.
Note this is estimated on AUD/ USD parity and nett income of 50 USD per BOO for remaining oil.
With shares trading at 24 cents I'm surprised a takeover hasn't been made especially with field performance a known parameter and tha fact that with some careful hedges the buyer can protect their downside prices aswell. Finally not to mention that they do infact have other assets.
I know somebody will notice soon hard not to notice Bank balance 100 Million but I wonder if directors are doing nothing because they don't want to be noticed ( don't wantto be taken over) and want time as they are looking for companies with good/known assets but no cash to develop them ?
These guys are old so I can't imagine they will want to wait forever otheriwse they want get a chance to share in the fruits of their strategy.
AGM should be very interesting this year. Heres to hoping they have done something by then even if only to initiate SBB. Why becuase it is in shareholders interest and best use of surplus funds in absence of suitable asset to purchase.
PPP Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
