Bello,Here's a straight fwd approach to valuing Artemis.Shares:...

Bello,

Here's a straight fwd approach to valuing Artemis.

Shares: 417.322m
MEO's interest: 70%
P50 resource (i.e GIP): 9.5 TCF
Rec Fac: 80%
Rec Gas: 7.6 Tcf x 70% = 5.32 Tcf net to MEO
IGV: 0.10c
Unrisked Value: 5.32 * 0.10 = $532m
Unrisked value/sh: 532/417.322 = $1.275/sh
Risked value at 10% success rate: $53.2m or 0.1275 c/sh

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Since there is a clear indicator of hydrocarbon presence in this acreage (WA-360P) i.e a gas chimney & nearlogy to Wheatstone, the success rate could b considered greater then 10%, say 33% to give a risked value of 0.42c/sh.

However, this will change to $1.275 or more, as drilling confirms the "Gas bearing nature & thickness of Net Sands".

If u go by Yogi's date, this may well fly in Feb. nxt year, so lock these in the bottom drawer, for now.

I tend to focus more on the nearology (discussed next).

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Nearby Field Reserves:

Looking at the reserves for the nearby fields,

Chevron's (100%) Wheatstone & Iago field have 5.12 Tcf gas & 37.2 mmbbls Cond. with higher Gas:Cond ratio (GCR)

Woodside's, Pluto & Xena: 5.125 Tcf gas + 5.06 mmbbls Cond.(almost dry gas, ie low GCR, about 10 bbls cond/MMCF gas)

The net sands encountered at Wheatstone & Iago were 175' & 154' thick (ie apprx 60 & 50m) & in the earlier Pluto well about 110m (the later wells were all, sadly, dusters).

Should Artemis have 30m+ sands (with a higher Gas: Cond ratio), then it will add a lot of potential to either players LNG plans.

Hence the current level of interest & need for further due-diligence by these 2 giants & for MEO - a farmout from their 70% interest, as they only have $21m cash on hand.

cheers