Just sharing a crude version of my net cashflow (NCF) and NPV projections for Wagtail. Cashflows are normally defined per year and then applied to NPV calculations, however as I am not incorporating typical wellhead flow modelling here and instead using the average over an estimated well life, the NPV8 will be conservative. Additionally I have used the maximum jurisdictional tax rates, non-incrementally, with no depreciation or tax relief applied, which will also skew net cash flows lower substantially.
What is the purpose of this exercise? It allows me to apply a rough Estimated Present Value of the un-drilled prospect as it sits now, and a net value that the market will start to price in to FDR once a partner is farmed in for drilling. Needless to say, based on the output figures, I like this prospect a lot and it is another successful value creation avenue for FDR to exploit.
GLTA
FDR Price at posting:
7.7¢ Sentiment: Buy Disclosure: Held
