Assumed 25% SPP take up from existing share holder, and include Pertamina cash, ROC should have more than $70m net cash positive. With strong cash flows, the company is likely to be able to debt fund BMG gas and Beibu Gulf developments, a substantial part of the 19mmboe in contingent resources.
ROC has a market cap of $600m Six producing fields. Over 4 million barrels of oil annually. Annual net operating cash flows over $200m at an oil price of US$60/bbl and 0.75 A$/US$ exchange rate. Equity 2P reserves of 22mmboe equating to an average 5 year field life. A 19mmboe of additional contingent resources that would nearly double life if successfully commercialised. . Is it safe to buy at this level, I have double up my holding of ROC @78c.
Good Luck
ROC Price at posting:
76.5¢ Sentiment: None Disclosure: Held
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