Sydney, you are kidding right? Are you saying that pre spud BUY will be 12c but on a successful drill the share price won't even double although the potential worth of the resource is $50 billion ($7.5 billion owned by BUY).
So therefore are you saying that BUY will only have a market cap of around 100-150m where they own a resource which could top $7.5 billion on a successful drill...??
As BUY have already said in their announcements, on a successful drill the shares would be valued at around $2, and probably higher once they get involved in using the gas for LNG purposes.
I would expect BUYs share price to track up towards $2 pretty quickly IF they find gas...
The low share price at the moment is taking into account the uncertainty involved with the government, with the drilling (if it will happen at all), the cash component for advent and the drilling timelines...
Once all this is sorted out and the rig is on tow towards new seaclem-1, then i expect the share price pre-spud will be 20-30c, IMO...
BUY Price at posting:
8.7¢ Sentiment: Buy Disclosure: Held
