meo valuation, page-13

iam,
nice post. that kind of effort is really appreciated and respected by the forum.

So, with the risk switch turned off, what is the potential value on our hands? Do we have another KAR on our hands?

Cash on hand:~$69m 69/477.2=14.4593cps.
VPS Current assets = $0.145cps

Non-current assets
Removed as they are irrelevant post drilling and program success.

WA-360-P Artemis
20.3Tcf (mean gas) x 60%(recovery factor) x 25% (MEO share) x US$0.50/mcf div 0.98 (fx) div 477.2m shares on offer = $3.26cps.

In addition to success at Artemis, the following value is also derived from the farmin:

$31.5m cash payment
Cash on hand:~$31.5/477.2= $0.066cps.

Free carried on follow up wells capped at $62m.
2 x $62m x 33% (MEO share of the 75% shared with PBR WA360-P)div 477.2m shares on offer = $0.086cps.

NTP/68 - Greater Heron
5Tcf (mean gas) x 50% (MEO share) x US$0.50/mcf div 0.98 (fx) div 477.2m shares on offer = $2.67cps.

NTP/68 - Blackwood
1.7cf (mean gas) x 50% (MEO share) x US$0.50/mcf div 0.98 (fx) div 477.2m shares on offer = $0.91 cps.

Unrisked Conclusion
Total VPS = 0.145+3.26+0.066+0.086+2.67+0.91
=$7.14 per share

Talk about counting your chickens before they hatch :)

SF

PS: Iam, does the NT68 Greater Heron resource estimate have a recovery factor on it? Or was the 5TCF the mean recoverable estimate?

Thanks again!