General Thoughts, page-1177

I believe that valuation is based on a 5 billion barrel discovery and assuming a US$20 per barrel in ground value.

So 1 billion net to PCL (who will hold 20% free carried) at US$20 a barrel.

For US$20 billion
or AUD$30 billion

Divided by 8.5 billion shares on issue

Equalling $3.50 a share ?? ($3.52 to be exact, or $3.513 as the Euroz note)

Obviously this is at the extreme end of the potential and the analyst is making a pretty big assumption that a oil discovery is worth US$20 a barrel in ground.
But for those that haven't read the research note there is a smaller case and best case scenario depending on barrels discovered, value per barrel and $USD forex etc etc.

So it could be 500m barrels or 1 billion barrels.
(Or Zero Barrels !)
(Or 10 billion barrels !)

And maybe it's only worth $5 per barrel in ground ... who knows.

Regardless, these are extremely large numbers being thrown around and the hype around this drill will only get larger in the coming months.