mir911,Point taken but havent forgotten about the potential of a...

mir911,

Point taken but havent forgotten about the potential of a maximum net 120 wells to AUT over the life of the project. As successfuly drilling occurs (i.e. the acreage is de-risked) I would expect the market will start to price in a valuation towards AUT NPV for net 120 wells.

NPV of net 120 wells @ $US 12.65 is $US1518 but most of those wells will occur in the future, over the next 10 years as you have stated. So those wells 'to be drilled' in future years would be valued less today. That would result in a maximum valuation of less than $US1518 (using metrics provided in the AUT presentation).

So I agree with OGG and yourself that AUT's acreage has the potential to move AUT higher as it is 'de-risked' but cautious of using a P/E ratio.

Cheers
Impact