NWE (ASX) Xanadu 3D Seismic

Originally posted by Pottermore: ↑

If ...... and it is an enormous if .... the proposed structure is as the Airbourne Gravitational survey predicted ..... and there is 160 million barels of Oil in place, then NWE share is 40 million barrels (25%).
Then you need to allow for yield and recovery rates of lets say the range is 25% to 50% ... gives us potentially 10 million to 20 million Barrels of Oil.
Now the arguement is how much do you value Oil in ground?
We are fortunate that we can access the reservoir from on shore.
This is a real plus as the initial cost for set up is low as compared to off shore and we have the permit to drill the deviated well already in our pocket once the sweet spot is identified.
The consortium are agreed to commercialise the deviated well and to harvest the Oil produced immediately.
Harvesting costs should be low.
The value of the Oil in ground, in my opinion, is at the upper end of figures so the range, I think, is from $7 per barrel to say $12.50 but if we work on $10 then everyone can adjust the figures according to their own opinion.

That gives us a potential value for the Xanadu field of $100 million to $200 million for NWE.
We have 3.382 billion shares on issue so the share price comes in ..... IMHO ..... at 2.95 cents per share for 10 million barrels of Oil and 5.91 cents per share for 20 million barrels of Oil.

Do your own research .... I like others here ..... have owned this share for a LONG time .... so I cannot claim to be any expert.

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Hi Potts, As you know, I have also been a long term SH in NWE and been part of it all, including Twin Lions, Moondah and the Puffin Oilfield debacle. Was also once a top 20 SH in 1999. (Ouch).
I'm obviously not an expert either however will take your 5.91c PS calculation for Xanadu every day of the week.
All we should then need to do now is to sell Arrowsmith, drill Lockyer Deep and Nth Erregulla and retire happy.

However, if the Xanadu 3D Seismic results do come up smelling like roses, how de-risked would you consider X to be? As we all know, nothing is a sure thing in the O&G game and being around as long as I have, I've now learned to take off the rose coloured glasses, when things start to look to good to be true and have another look without them on.
I'm not trying to damp down the new hype, (conversely I'd love to throw some fuel on it), however what do you see as being any possible roadblocks to production if all of the stars on X align for us this time.