Wilson's 2.5c on good results is a very reasonable estimate. If ADX deliver it is game on for VIL.
My reasoning:
ADX are quoted as stating a 51 million barrel median reservoir and XST are quoted as saying recovery rates vary between 15% and 45%.
So for example using a conservative 25% recovery on 51 million barrels VIL's share would be 1,275,000 barrels.
Oil is $100 a barrel.
That is 127.5 million dollars in potential revenue for VIL on a relatively conservative estimate. That is 19.6 times the current market cap. Or about 10c
Of coarse the revenue would be a while off but SD would then be an asset that could be partially sold off or used to leverage further development of the prospect and FP too.
VIL Price at posting:
0.5¢ Sentiment: Buy Disclosure: Held
