Hi folks Thought I would start a thread as to ROCs potential this year as I realised in my last post I underestimated cash With Brent averaging a record in 2012 and looking for another Solid year what will 9000 bopd ( my estimate ) deliver for 2013 Assuming an average price of 110 for the year 361 million in reveneue ( vs market cap of 310m It will deliver approx 140-170 in free cash flow It will deliver a PE of sub 6 Therefore assuming normal metrics ROC has room to move to 70-80 on current assets
It will deliver a reserve valuation ( ex cash and inv of 83m as of end of last quarter ) of 350 ( 14mboe net of 2012 production plus 1 mboe of new reserves ) plus cash and inv of 83 m = 430 m. So once Balai is added and other prospects and permits again we move to 70-90c range without more success
Roc is on the cusp of a big reveneu increase as well as a drop in capex 6 months out from today so cash flow will be big over the next 6-24 months alloowing for rapid growth and development
ROC Price at posting:
45.5¢ Sentiment: LT Buy Disclosure: Held
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