valuation, page-12

Kastin

At the begining of this thread I had a go ( back of the envelope) at valuing OXX.

This wis what I wrote regarding Winchester.

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

As you see I risked it at 30%.

If it should come in with liquids then are talking about $1.00 per share to OXX in ground.

Palta is a wildcat, Winchester is not, it is really an appraisal well. For years Geoff talked about the Parker 1 well gas discovery in the Mungaroo Sands which was not tested due to an anchor chain breaking etc etc. However the gas shows have been calibrated against other discoveries in the area and ther seems some confidence about it. As I say it is more about wheather or not it is commercial.
Palta 1 I am not holding my breath but I will be extreemly disappointed if Winchester doesn't come in. Notwithstanding the O & G businness seems to be mostly about disappointment.