Thanks for that 618.I really appreciate your brilliant...

First 49 Last

Share
Profile

Follow
pjf

2,218 Posts.

65

15/05/24

10:13

Post #: 73829857
Share

Originally posted by 618: ↑

For a simplified view of what a successful W7 will mean for STX, I will assume linear production and neglect field declines over time, and an average realisable sale price of 7.5/GJ

At the current production rate of 24TJ/d, the field will last approx 6.4 years till drained, raising a total revenue of 420mn over the total life of field at an annualised rate of 65.7mn, with NPV of 290mn for Walyering. If and when the interconnector to DBP is up and running (which is for 10TJ/d), and we can raise field production to 34TJ/d (not going to assume higher until the plant has been upgraded), the field will drain in about 5yrs with NPV of 308mn due to faster cashflow generation within a shorter timeframe.

Now, if W7 successfully delivers an additional 34PJ of 2P reserve, it will extend the field life (at 24TJ/d without the DNP interconnector) to 10.3 years, generating total revenue of 676mn over life of field, with a NPV of 393mn. With the DNP interconnector in place and daily production is increased to 34TJ/d, it will have a field life of 7.3 years with NPV of 435mn.

So W7 success is worth an extra 100-130mn in NPV terms to STX (quite a bit when the company is valued at 686mn by the market).

618

Expand

Thanks for that 618.

I really appreciate your brilliant contributions.

Sounds great if things fall into place, for which I am optimistic for this case.

Cheers

Peter

STX Price at posting: 24.5¢ Sentiment: Buy Disclosure: Held
5 Upvote

0 Great analysis

Reply

Top Stories

MTH

Mithril's drilling in Mexico picks up silver at 997g/t, gold at 28g/t

What's causing the cost-of-living crisis, and how to navigate it

SWP

Swoop lobs $18M offer at microcap telecom Vonex – in which it holds 19.9%

NVU

Nanoveu surges 10% after benchmark testing for new AI chip begins

MKT

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

IRX

InhaleRX snags $38.5M in funding from VC biotech funder Clendon

SNX

Sierra Nevada raises $2M for silver exploration at Blackhawk

TLG

Talga Group wins key permit for flagship graphite mine in Sweden

M4M

Macro, Norden set up transport solutions initiative for West Pilbara

Week 42 Wrap: HotCopper's top picks; new ASX 200 record; world yawns at war