re: 15% +++ bluesky breakout potential +++ In Jan 04, NWE contracted to sell it's 5 % interest in the in ground reserves of the Cliff Head oil discovery off the coast of WA.
They received $8 pbl when the oil price was trading at $US 30 pbl.
Now that the oil price has risen to $US 65 pbl the value of in ground reserves in the Bass Strait would be more around the $20 pbl range.
Gilbert 1 has a production pipeline running through the lease and any sale of a discovery would be relatively easy in industry terms.
Any calculation of the value of a discovery in Gilbert 1 based on $20 pbl for oil in ground and of course, assuming a discovery, adds $5.00 to GOP's share value.
How the market responds remains to be seen, but it's possible and definately too good to ignore.
GOP
gippsland offshore petroleum limited
