Jpr has one well - conservative oil production 400-500 bopd
and:
if we find oil here it may well flow 1000 bopd approx.
So at 1500 bopd @ USD$70 per barrel - net to JPR USD$ 30 per barrel
Hence, 1500 bopd x USD$30 x 340 days per year = USD$ 15.3m
= AUD $17,000,000.00
So the mkt cap is approx. $42,000,000.00
Whats a fair PE people?
Well, with the market getting a sniff of success today, I think its fair to say the market cap isn't staying at these levels for long. People are accumulating stock leading into the success of this well. The target depth is probably less than 150m away and the chance of oil extremely high. The oil is there, with only a technical difficutly standing in the way of a major re-rating.
As we know when this runs there is little avaliable volume so don't be suprised to see this at 10c very soon. Remember it hit 8.4c on the last wells success. Then the market and the extended drill time of well 2 finds us at current levels. This is very cheap no matter how you cut it.
The drawn out drilling process will reward the patient and unfortunately cause those who were impatient to buy back at higher levels.
JPR Price at posting:
5.3¢ Sentiment: LT Buy Disclosure: Held
