However - if Hector fails, price probably falls to about 25c in current climate and recovers back to 28c given new production coming on line and lots more prospects to drill.
If hector is successful, price rises by up to a dollar by the time commercial flows are proven up.
Even assuming only a 10% success rate on Hector, the odd are stacked in your favour from this SP. I feel a fair SP is more like 35-37c leading up to Hector result so at this price it is good value.
Price may certainly fall on Monday given the DOW performance. Though consider that from the peaks the ASX has fallen 5.9% compared to DOW 6.2% - so the 2% fall on the DOW only really caught up to the ASX. Any further fall on the ASX on Monday would be very much overdone considering our market is only indirectly affected by US credit problems. The mini-correction seems overdone and will come out in the wash over the next couple of months.
PPP Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
