rough value estimates

CTP has a five well drilling programme underway. The company has told us of its upside guess of oil reserve potential of 250 million bbls. But suppose CTP discovers ONLY half of this; roughly what value would that add to the company's shares??

Now CTP has 250 million shares on issue, and we are going to assume only 125 million bbls of crude is discovered [recoverable]. The in ground value for a field in that area when oil is selling for [say] $US130 per bbl could be [assuming an in ground price of $A25 per bbl] :

125m X $A25 divided by 250 m = $12.50 per CTP share

Now I know that this is a rough illustration, but that is our upside potential. The shares at 19 cents look pretty cheap to me. Conix