Hi Blokes, I recall we ran through this a week or so back on HC...

Hi Blokes, I recall we ran through this a week or so back on HC and a few of us thought a ballpark figure for undeveloped resources would be around 2c on the sp per undeveloped BCF - ie 100BCF = $2.00 sp.

In hindsight this may be a bit ambitious as flow rate will be low and numerous wells will be required (a la Lisbon) which raises cost and delays cashflow. Still, my ready reckoner I'm using is that if we hit 1.5c per BCF then I may start to get an itchy sell finger for my short term shares. Flip side to that is that production leadtime is very short which will raise the value.

Big question will be when will the company be able to actually provide resource estimates - may be many months and a few more wells away. So how does my itchy trigger finger know when we have reached 1.5c per BCF? No idea to be honest, pre the Pinkerton Trail find, I was guesttimating that we were sitting around 150BCF - but guesstimating is all that is - could be orders of magnitude out...

Yep - happy to be shot down, but thats my view

Z