Shares: 62.1 mill and 1.2 mill options. (Use 62.5 mill shares in calculations).
From Sept presentation: Total cost/barrel (before tax) dropped $10 from 2003's costs to $ A33.93 per barrel in 2004. As there wil be more barrels in 2005, use $A26 per barrel.
(If we use these data now then based on 3.1 mill barrels, $A60 revenue per barrel (See below), $26 cost per barrel, the total net before tax will be $A105.4 mill or $1.68/share or after 20% tax $1.34/per share). _______________________________
2. The well "Arwon" with 5 mill recoverable oil; STU is entitled to 88.8% or 4.44 mill barrels.
3. VALUE per barrel. Add the 3.1 mill barrels from (1) to the 4.44 mill barrels from (2) and we get 7.54 mill barrels at say $A60 per barrel. (US$42/barrel; Forex:0.7) or a total of $A 452.40 mill in situ or $A 7.23 /share.
From (1), the total cost is $A26/barrel or based on 7.54 mill barrels $A $196.04 mill. Deduct that from $452.40mill to leave a net of $256.40 mill or $ 4.10/share before tax.
Last year no tax was paid and there are tax losses. Assume that 20% tax is paid or $51.30, to leave $205 mill or $3.28/share.
That would be reasonable close if all the reserves would be drained at end of this year but they won't be. On the other hand, more wells will be added in future years.
There are also more wells to come this year and these have been excluded.
There are about 550,000 barrels hedged at $A40.30 but these can be settled when accounting for the remaining discoveries in the current financial year.
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STU Price at posting:
0.0¢ Sentiment: None Disclosure: Held
