IVZ - General Discussion, page-24

lol…I was waiting for someone to say that @CountStonkula!...

I normally work on upfront cash value for known resources. So US$1,760m for 600mmbbls = US$2.93/bbl as an oil case valuation metric. Given that Scott has said a number of times that we’re liquids rich I’m happy to run with this as a takeover value for a predominantly gas condensate case as well.

I’m going to be bullish and say that we’ve got the pre-drill estimates from Scott for Mukuyu for 1.9 tcf + 77 mmbbls in the Dande; 2.5 tcf + 102 mmbbls in the Pebbly Arkose; 4.1 tcf + 182 mmbbls in the Upper Angwa; and 2.6 tcf + 120 mmbbls in the Lower Angwa. For a total of 11.1 tcf gas + 481 mmbbls condensate (or possibly light oil).

IVZ use a conversion of 1 BOE = 5,800 scf natural gas.

So 11.1 tcf + 481 mmbbls = 1,914m BOE + 481m = 2,395m BOE.

2,395m BOE @ US$2.93/BOE = US$7,017m.

80% stake to IVZ = US$5,614m ——> A$8,256m (using USD/AUD = 1.47).

Assuming that following some further cap raises our fully diluted shares on issue will be around 1.3B, this equates to A$6.35 per share for Mukuyu only!….