getting ready move, weeding out the sellers, page-5

cue some numbers....
just some numbers

CUE market cap $105 million

Jeruk 700 million barrels (recoverable oil)
CUE share 15% = approx 100 million barrels @US$45 - production cost US$10 /barrel -35%(indonesians share) = US$20 /barrel for CUE

US$2 billion in revenue for CUE

CUE cost to participate in Jeruk
assuming US$20 million per well cost
drilling cost Jeruk 1 US$3.5 million + 10 x cost = US$35 million total cost US$ 38.5 million
drilling cost Jeruk 2 US$ 3.5 million + 5 x cost= US$17.5 million us$ 21 million

TOTAL cost US$59.5 million

Field development costs

approx US$900 million

CUE share field development US$135 million

TOTAL COST TO CUE APPROX US$ 200 MILLION

CUE PROFIT SHARE AFTER COSTS APPROX 1.8 BILLION US DOLLARS

If the brokers are saying that Jeruk is worth $1.50 a share for Santos which calculates into: 600 million shares x $1.50 = approx 900 million dollars!

CUE will have approx 30% of STO share in the field which gives a value to CUE on the same brokers terms of around 300 million dollars.

This is 3 times the Market Cap of CUE at present!!!!!


comments welcome