value

Highly disappointed to see yet another drop by RIA today, I make that a market cap of circa $22.5m based upon the last traded price of 3.3c today.

Ridiculous when you consider what we have.

Petroci bought (once they have paid) an additional 10% (paying plus beneficial interest) in Gazelle alone for $10m. If you use this as a value calculator for RIA I get the below.

2C Contingent resources = 32mboe (6mbarrels plus 156bcf of gas).
Interest purchases = 10%
Consideration = $10m
Pro rate Gazelle value at 100% = $100m
Gazelle value / boe = $100m / 32mboe = $3.13
RIA Interest = 35% x 74% = 25.9%
RIA Interest (barrels) = 8.3mboe
Value - (8.3mboe x $3.13) = $25.9m

So using the Petroci farmin, Gazelle is worth more than the ntire market cap of RIA!!

I know there are funding concerns and I hope the company release something on this soon, as I ahve stated in other threads, my belief (no-one from RIA has spoken to me about this) is that they are trying to defer the exploration wells and swap this for early Gazelle production. On an NPV this would be very attractive for both RIA and particularly Vitol because at least half of the capex has already been spent as 2 out of 3 producing wells have already been drilled and suspended.

I think once funding concerns are alleviated, that RIA will bounce strongly to the upside.

Just a little valuation below:

Gazelle (assuming it is developed and we book 2P reserves) then the 8.3mboe should be valued higher than $3.13. Even basing this on $5 / boe (I can have a look at my cashflow later and see what the cash return is) then Gazelle would be worth $41.4m.

Valuing Addax (20.5mboe) and Hippo / Bubale (32.6mboe) at 70% of the Gazelle farmin price from Petroci of $3.13, then $2.19 multiplied by RIA's interest in Addax (6mboe) and Hippo / Bubale (9.6mboe) then this would equal another $34.1m or in total $75.5m or more than 3 times the current price.

Surely once cashflow concerns are alleviated, RIA will get out of this nosedive and start rising again, back to most of us long termers break even points!!

I ahven't even considered Starfish right now and won't unless we find something as its truly frontier drilling but I think there is plenty of value in RIA and particularly in CI-202 but we need the BOD to come out and tell us what is happening and release some of the funding risk that is clearly battering the sentiment in the stock.