Good comment moneytax.
The other thing that I should have added into the equation but did not want to get too carried away is this possibility.
If Jumonville #1 does prove to be sucessful and commercial for oil and possibly/probably gas then it is quite likely that several wells will be drilled into Bullseye to increase the production.
That often happens as a development of a successful first well. So if it is a goer then we cpould see a series of well drilled (e.g. Jumonville #2, Jumonville #3, Jumonville #4) there by increasing the daily and yearly production. So instaed of a US$1 - 2 million gross income from a successful Bullseye then we could be looking at that multiplied by the eventual number of wells put into the structure. If it was a total of 4 say - then we would have say US$ 4 - 8 million gross annual income to NEO at a rough guess.
Then, of course therea re the other prospects in the area that are seen as possible repeats of Bullseye if it proves to be commercial. I'm sure NEO would want to be involved on the same basis in those too.
So - yeah - that 5% might turn out to be not a bad little throw of the dice.
The other thing to remember too is that if we take the basic 500 barrels of oil a day rate that would be ok and multiply that by say, eventually 4 wells then the daily proction from Bullseye could be around 2,000 bopd.
In annual production, at that rate, it would total around 730,000 barrels.
Now the field is estimated to possibly contain 12.5 million barrels plus 33 bcf of gas
On the basis of the 12.5 mbo that would indicate production for about 17 years at that 730,000 barrels per year rate.
That could have a beneficial impact on NEO's valuation ....wouldn't you think ??????
NEO
nuenco nl
