the defintiive valuation, page-11

Hi SR,

Like you I love this stocks potential and Oil production will cover a lot of gas appraisal/testing/development going forward.The decision to focus on conventional oil is gratifying and sensible given the high rates of return and low outlays compared to a major gas development.
With gas resource conversion to 2p/3p reserves over next year valuation will grow as will interest from majors. Potential for takeover now is low as we are still 6-12 months away from having certified gas, associated liquid reserves.
Is the planned initial total Ugani field production 10,000 or 5000 bod ? Needs checking with past announcements or by calling BRU. I think it is probably 5000 bod total giving total oil revenue of approx US$200 mill per year ($100 mil for BRU less production/transport costs of $40 gives $60 mil net before tax that Eric quoted ). The $60 mil net seems very high and maybe explained by low forecast capex and opex for this field and short transport distance to Broome ? Oil Export Terminal.
I will call BRU mid week to clarify production and expected net return figure and post any news on HC.



Cheers