Summary of BRK, page-77

Good morning all and @danpech @peto2810 @CariKaya

I've been doing a fair amount of reading on BRK this morning as well as dropping DP a quick email to confirm one or two points. I'm trying to figure out how to value the company as there are a lot of interesting numbers being thrown about but I'm not sure everyone appreciates them.

In the interview I read with David Prentice (from around 2019) I think it was, he categorically states that BRK are not in the game of being an oil producer. They are more like real estate developers. They (Black Mesa) find undervalued acreage, BRK prove it up through drilling etc and then flip it. They reduce their exposure by having these different orgs like Black Mesa and SHE to do different sections of the 'project' then pay them when it's sold on.

The dollar values I'm seeing through my reading are around $30,000 per acre. BRK owns 2,480 acres + around another 700 or so in a couple of other counties. If they were to all be sold today that would = circa $125m AUD.

Now, the question I have for you more experienced and more knowledgable holders is where the gap comes in the valuation. BRK has stated they have a program aim of circa 20 wells over the next 5 years. Now at a flow rate of 1500 BOEPD and the 15 - 25% flow rate decline annually for a given resouce estimate of 11.6m BOEPD (albeit conservative and may well be around 20m)...then on very rough estimates:

1500 x 365 x 20 = 10,950,000 which is not far off that 11million mark. Given that there are plenty of factors that I haven't accounted for (the big one being that there are not 20 wells operating as we speak...or even one) then do we fill some of this gap in valuation through the sale of the oil we are producing? A lot of the value in our proposition is surely the fact that we prove up the ground and not take all the oil but leave that for others. In fact, is that all we do? Do we spud a well then not take the oil and leave that for the future owners when we sell it?

Online, oil explorers etc and real estate companies are forward valued at around x15 and x19 respectively. If we use x15 forward valuation then does that mean we could be forward valued for everything being operational at around 1.8 billion AUD?

My apologies for my thoughts and figures being all over the place but I'm fairly new to this space so just keen to garner any further insight from anyone who knows a bit more about all this stuff.

Many thanks,

Rego