huge oil discovery

Has anyone seen the announcement today?

It appears to be positive for the company.

The Riddle # 7 well has struck oil at 995 feet and was flowing at 1 barrels per minute.

They produced 115 barrels in 3 hours which suggests a rate of 40 barrels per hour.

This translates into around 960 barrels of oil per day or revenue of US$65 or $62,400 per day or $23m US per year.

Deduct 12.5% for the landowners royalty and we get $20m US or $25m AUS per year.

I'm not sure what their margin would be but they would have to make at least $5m off revenue of $25m.

There are just under 100m shares on issue fully diluted and it last traded at 8 cents.

This gives it a market cap of $8m which means the company is trading on a PE of less than 2.

Am I missing something here?