Partners impute 20-35 million barrels oil in place (per sesmic & drilling data). At US$20 barrel field is worth US$400 - 700 million plus gas valuation which is substantial. Assume appox US$600 million. SUR valuation (10%) is US$60 million A$80 million. With issued shares at 149 million, per share valuation is 54 cents. Throw in US$50 million development cost to produce 5,000 bpd / 15,000,000 cfd gas. Annualized production is US$100,000,000 oil & US$38,000,000 gas = US$138,000,000 SUR interest (gross revenue) is US$13,800,000 BUT IF field produces at the higher rate this number doubles and SUR interest is US$27,600,000 / A$36,700,000 Per shares gross cash flow is 25 cents. EBITA say 50% of this number is 12.5 cents. Value per share 6x12.5 cents = 75 cents.
So value is somewhere between 54-75 cents for 10% of Eagle to SUR. Conduct same exercise on other partner per % interest to come up with a ballpark valuation.
SUR Price at posting:
0.0¢ Sentiment: ST Buy Disclosure: Held
