Complex, At $US70/bbl over 9 years , my DCF [not as rough as...

Complex,

At $US70/bbl over 9 years , my DCF [not as rough as guts] gives me $3.10 per HDR share for Ching alone. Tiof will add two to three times this. Do not forget in your model to allow for a fixed interest return on the funds as they are being generated; I have allowed 6% pa to get the figures above.

Simon was emphasising this point yesterday when he referred to everyone participating in the oil as soon as it was available. The funds generated become a business on their own as they will rapidly replace borrowings and simply compound their way to more cash.