Hi Mike,We discussed Smegsy-1 gas field and he mentioned over...

Hi Mike,

We discussed Smegsy-1 gas field and he mentioned over $10,000,000, he wasn't quite sure of current pay price but said $10m was conservative figure. I was trying to calc some figures myself but can't remember if its $2,000,000 per BCF or $2,500,000 per BCF.


Smegsy-1
------------
Est flow rate: 1,000,000 - 5,000,000 CF
(are confident of getting 4 - 5 Million CF)

Size: 20 Billion CF

EPE Interest: 25% of 20 BCF = $10,000,000


Even with Yellowbank creek-4 the figures he mentioned was around 350 bopd and reservoir size was about (he estimates) 1,400,000 barrels. But he said I could base my calc on conservative figures of 300 bopd since the well was still cleaning up and size to 1,000,000 barrels.

I also said, How much per barrel $30?
He said, No, we get $50.00 per barrel with Yellowbank Creek. He also said he had heaps of investors calling asking him for figures and when he told them the figures they said, ahhh, your shares are worth 0.70c to 0.80c. He replied with OK !!..


My quick calc
--------------
1,000,000 barrels X $50.00 per barrel = $50,000,000

EPE Interest of 50% = $25,000,000

25,000,000 / 56,000,000 = $0.44c per share

Ironic enough the stock went as high as $0.43c on just "Oil Shows"..


Yellowbank Creek-4
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Flow rate: 300bls per day @ $50.00 per barrel

Est Reservoir: 1,000,000 +


Add Smegsy-1 value and you'll get about $0.625 cps.



Nulla Nulla-1 would have been great.
They have some ideas to try on Nulla and are still researching it.

Cheers,
Ace.