Going way back to the Competent Persons Report they value SA330...

Going way back to the Competent Persons Report they value SA330 and SA430 at 27M and 112M respectively based on USD90bbl.

If we take current prices at say USD130bbl we get a total for both of USD220M. ERHs share is 40 percent which equals USD88M or USD25c per fully diluted share

Now we know SA330 valuation is based on 80 to 100bbl per day so in calculating SA430 the report would have assumed a flow rate of 400 to 500bbl per day.

Therefore when flow rates are announced for SA430 for every 500bbl per day over the original estimate of 500bbl per day we add USD20c to the share price.

I have not made any allowance for the second drill location or Silver Marlin


Thoughts



Spozzie