I thought I would explain my view on why I think TAP provides...

I thought I would explain my view on why I think TAP provides one of the best risk/return opportunities provided by the market in the O and G space for ,any many years

taps core value I circa 80 -90 cents with 6 million in 2 p reserves all oil , 87 million in cash, locked in gas contracts totalling 45 million NPV and gas finds which I ascribed a very low 40 million for

It trades at 56
Now what are the costs and benefits of starfish
It's a well that will cost approx 15 million for TAP . So if it failed we could delete about 7 cents a share from the core value - the SP I would assume would drop by less as the rest of the value is so much higher but lets say it dropped by 5c on failure

Now the upside -
Success on a 400m barrel target With 20% cos
If we ascribe 8 dollars per barrel for a discovery - thats 3.2 billion of which TAP has a 17% stake so 544 million dollars value unrisked and risked ( 544 x COS of 20% = 109 million or about 43 cents a share .
So downside 5-6 cents from core value which sits at about 80-90 and upside 43 cents risked and 3-4 dollars on discovery