I was just playing around with some rough valuations of SD just for a giggle whilst we wait for the test rig. I just wanted to figure out what it looked like based on potential flow rates. I've done it really simply and haven't taken into account decline rates etc and used a $40 oil price to relect costs an royalties etc.
So if the flow rate is 2,000 bopd then potentially worth 1c per share to VIL.
The revenue from this well is not as important is the valuation of the whole permit IMO, we just need to prove up the well.
Share on issue:
2,262,000,000
$40.00
BOPD
Rev/d
Rev/a
8 yrs ($m)
VIL 10%
cps
500
$20,000
$7,300,000
$58.40
$5.84
0.003
1000
$40,000
$14,600,000
$116.80
$11.68
0.005
1500
$60,000
$21,900,000
$175.20
$17.52
0.008
2000
$80,000
$29,200,000
$233.60
$23.36
0.010
VIL Price at posting:
0.5¢ Sentiment: Hold Disclosure: Held
