valuation

Been reading about how cheap Cue is. Octa Phillip Research commissioned
By CUE showing valuation and one year price target of 38c

Indulge me for a second and look at OXX. Travelling well under the radar as usual with no comment and almost zero turnover.
Remember that Geoff was a director of CUE and recently made a distribution of CUE stock when it was trading at 30c. How smart was he. Further he has been selling down his Cue stock, increasing the pressure on CUE I suspect.

Anyway let’s look at OXX. Qrterly out with no surprises and looks like it is travelling well. As for valuation well here in a rough one and I will try to suppress my irrational exuberance!
Two confirmed free carried drills coming up and one more almost definite making three in the next nine months.

Fully diluted 225m shares

Taranaki Basin PEP 51906

Makutu Prospect 25% free carried with OMV. 65 million barrels.
15 mbbls @ $15 per bbl = $ 225m risked @ 10% = 22.5m =

10 cps.


Dampier Sub Basin 323 -330.

Winchester 25% free carried by Santos. 1.5 TCF. To be drilled 1QTR 2103.
Liquids rich. This is not a wildcat but an appraisal well. It is how much gas and is it commercial. I’ve risked it at 30%.
Say 1.6 TCF @ 25% = 400BCF to OXX @ .50 = 200m risked @ 30% = 60m =

26cps

Dampier Sub Basin.
Southern Exmouth Sub Basin WA 384.

Shell to drill the Palta 1 in 4 Qtr 2012.
OXX 1% OOR plus discovery payments.
People say that 1% OOR equates to 7 – 10% interest. Little detail available but say a 2 TCF target then that would be @ 7% 140BCF to OXX @ 50c = 70m
risked @ 10% = 3cps
With discovery payments lets call it

5cps.

Cash 16m plus 5m to come from partly paids = 21m =

9 cps.

Cornea WA 342

Somebody will have a go at this. I'll risk it @ 20%.
19% of a 60mbbl contingent resource.
This would be 12mbbls to OXX at $15 = 180m risked @ 20% = 36m =

16cps.

Other permits. There are lots. There will be other farm outs. Look at the seismic going on in the Southern Bonaparte Basin and permit adjacent to Blacktip etc. Big acreage in NZ where OMV are keen
Say 22.5m or

10 cps.

This is a total of 76 cps.