Sourced from Citi - STO: If the Zola-1 JV could farm-in to...

Sourced from Citi - STO: If the Zola-1 JV could farm-in to receive a 12.5% interest in the project by contributing 1tcf of gas (Apache/Kufpec received 25% interest in Wheatstone by contributing 2.1tcf gas) we estimate a DCF valuation of A$0.29/shr for STO's ~25% interest in Zola-1. If Zola is ultimately a 2tcf discovery as per TAP's commentary, we would see valuation of A$0.58/shr unrisked for STO.

If I provide the same to Tap in consideration of market cap and 10% of Zola we arrive at A$0.42/shr in the 1tcf case and A$0.84/shr in the 2tcf scenario.

I'm not taking this as gospel but if TAP continues to trade at such low multiples we should not rule out corporate activity. Sooner or later someone will wake up to this.