OK, I'm no expert on oil/gas but a quick back of the envelope calc for yesterday's announcement, just to throw open for discussion. Appreciate any corrections/views/revisions from the wiser heads like Slick & Salty.
Minimum Estimated Reserves: 20Bcf
Value in Ground: $3/mcf (USD)
NEO Rights: 37.5%
NEO Valution of Discovery (before Royalties): $28.125M (AUD using AUD=$0.80USD)
NEO Market Cap: $22M AUD
Even allowing for royalties, there is no downside from here. Yes, I realise there will be dilution with the option conversion, but that will also bring cash that will negate that effect.
"The only way is up.....baby!"
Figures open to analysis and I welcome any help/correction/debate on the figures or interpretation.
NEO
nuenco nl
OK, I'm no expert on oil/gas but a quick back of the envelope...
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