analysis estimates 3-8 cps royalties from buru

StockAnalysis' analysis of Buru's Canning Basis assets estimates total royalties payable to Fitzroy of $31 million (which has an NPV of $17 million), with peak royalty payments estimated at around $3.1 million annually (~3 cps) from a base case of a total 16.7 mmbbls of oil production from the Ungani and Nullara units over 20 years. Assuming regional development and expansion of existing 2P Reserves, an enhanced 48 mmbbl of oil case is developed by Strachan, resulting in peak royalty payments estimated at close to $8 million (~8 cps) annually.

Additionally, "the Ungani oil province is just one of many exploration and development opportunities ahead for the Canning twins. Testing of conventional gas potential as well as tight gas and condensate deliverability at Yulleroo holds longer term potential to unlock several trillion cubic feet of gas plus many hundreds of millions of barrels of condensate to add to the value that is clearly emerging from Ungani." So there's upside potential of perhaps dozens of cents per share of royalties.

I for one am happy to be a holder - assuming the lion's share of royalties are paid out to shareholders, then I reckon 8 cps (or more) a few years from now from a 40 cent company is not too shabby.