Strong Prospects For Cooper Energy In Tight Gas Market, page-8

No. I calculated the NPV (today in 2016) of the Sole project to be worth $137.5 million to COE (not including opex, taxes, depreciation/amortisation in the calculation and assuming a capex of $500 million). With the shares on issue at the time of that calculation the NPV of the Sole project alone was worth $0.41/share on a 100% de-risked basis.

If you are saying that there are now going to be 417 million shares on issue (I'd need to check that number) then the NPV of Sole today works at 32.8cents per share which shows that the recent raising hasn't been that great for us. Note this is the value of the Sole asset alone on a 100% de-risked basis by my calculation. I would need to recalculate using some opex cost assumptions and I note the article was stating $550 million development whereas I used $500 million. The figure is likely going to be less than 32.8 cents (by my model) when you add in opex. The value can be improved if the Capex can drop below $500 million but we will have to wait and see the outcome of the study.

The company still holds significant cash and its oil producing assets in the copper basin so there is obviously more value than Sole alone, although Sole still carries significant risk until its commercial case is proven and the funding arrangements are finalised and the project is built within budget and is operating to nameplate capacity.

Still a hold for me at this stage.

Eshmun