good luck!, page-17

Hi P1000

I'm not sure 90 cents will take long to reach. If your calculation was 600mmbbls x .4 recovery x .33 working interest x USD$15 bbl/1.3bn shares then that should be what a strategic buyer of the company would use as a starting point. Shell will have the biggest interest at a cheap price so taking out the balance would be attractive as the quicker its developed the faster the NPV figure rises. They wouldn't want pesky juniors slowing them down. Success at G1 will also validate the geology of the basin and that will have greater strategic value which your 90 cents wouldn't capture. The important variable might be the NPV of oil with a higher price used to reflect the premium for corporate activity. Hopefully we won't be trying to multiply by zero at the start of the calculation.