+ valuation if arwon has 5 mill barrels (p2) + , page-3

Thanks Costics,

From my post:

"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".

Someone emailed and asked what share price we can expect should ARWON be a successful well.
I don't think one would pay $3.28 for assets which haven't been cashed up, however, $2.20 would be a very reasonable start, I think.

One ought to pay a premium for the percentage of successful strikes (The highest at 67%) and the high calibre of Management.

There are of course more wells to be discovered this financial year.

I think an extra 30 cents won't be that much, so for my own purpose I would use $2.50/share should the ARWON well be successfull.

There are of course no guarantees and investment in oil companies involves risk. Not everyone can afford or tolerate risk.

Gerry
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