sp estimate after cap raising?, page-7

Hi ListerWA,

The recent increases in WA gas prices IMO outweighs the recent dilution- TSV's NPV figure of 20cps is extremely conservative IMO...

The below (dated Nov 08) valuation of the Warro Gas project is based on conservative gas prices at $AU6.82/GJ

* The Project’s NPV on reasonable case assumptions of
$2 billion ($200 million TSV’s share ~ 20c per share)

http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00907428

"In only the second Australian contract linking domestic gas to international oil prices, Citic's $US4.2 billion ($5.8 billion) Sino Iron ore project in the Pilbara will pay about $US7.80 a gigajoule (GJ) for its gas when oil prices are at $US50 a barrel, according to Santos yesterday".

"The Citic contract is fixed for three years, but after that is understood to be directly linked to oil prices, and at $US90 a barrel would deliver prices of around $US14/GJ to Santos".

http://www.theaustralian.news.com.au/business/story/0,28124,24885298-12829,00.html

JB