The net spend is just leverage to hole depth and location. The same offshore well would require a multiple of the budget. A better way to have a crack at risked value post farm out is using the drill target figures
Assume
$5 Barrel oil equivalent value
IVZ share 40% post farm out
I took a guess at different COS based on previous wells.
Main Target Upper Angwa
Chance of Success (COS or geological success) post Seismic = 20%
4.4 Tcf and 187 mmb (divide gas volume by 6 for barrels)
920 mboe
Secondary Target Pebbly Arkos
COS = 10%
1.4 Tcf and 60 mmmb
293 mboe
Tertiary Targets Forest Dande Lower Angwa
COS = 5%
0.411 Tcf
1.6 Tcf
0.391 Tcf
3 mmmb
403 mboe
Risked value using sum of parts for single well with multiple targets
$5 * 920 * 0.2 *0.4 plus $5 * 293 * 0.1 * 0.4 plus $5 * 403 * 0.05 * 0.4
$466M risked value....
Ive seen additional risked valuations add an additional recovery factor to these estimates to account for the target not fully translating into a 1C or 2C recoverable resource. Other valuations account for the primary target only. But then Ophir (and others) exceeded a stacked gas target by 55% so it can work both ways....Even accounting for main target only, lower recovery, lower COS, less well share its hard to massage a risked value for IVZ below $100M.
I think IVZ will end up with 700 to 800M shares fully diluted including performance options, a lot depends on what price they raise at pre drill.
Links;
https://www.asx.com.au/asxpdf/20191106/pdf/44b9yp36w21vl4.pdf
https://www.ophir-energy.com/wp-content/uploads/2015/08/Ophir-AGM-Presentation-FINAL.pdf
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Last
7.2¢ |
Change
0.001(1.41%) |
Mkt cap ! $109.1M |
Open | High | Low | Value | Volume |
7.0¢ | 7.2¢ | 6.9¢ | $132.2K | 1.903M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 39904 | 6.9¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
7.2¢ | 272761 | 2 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 39904 | 0.069 |
10 | 693819 | 0.068 |
4 | 297984 | 0.067 |
4 | 275151 | 0.066 |
10 | 1008869 | 0.065 |
Price($) | Vol. | No. |
---|---|---|
0.072 | 272761 | 2 |
0.073 | 772501 | 6 |
0.074 | 1134171 | 6 |
0.075 | 1258979 | 3 |
0.076 | 1067581 | 3 |
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