A loss of $148 K this quarter is very commendable with very little production, many of the junior oilers who over-renumerate their staff could learn lessons from ITC.
Technically they have done everything right as far as I can see during the drilling (my area of expertise).
I have a substantial holding and will be quietly picking up many more in the coming months.
I have been trying to work out the value of ITC, not sure how to work out the current value of assets but for the upcoming programme my Driller's method is as follows:
1. Drill 8 out of 10 wells. 2. 1 Duster. 3. P50 reserves = 7 x 352,000 = 2.5 MM bbls. 4. Recovery factor of 30% ?? = 750,000 bbls 5. Value of oil in ground = $40/bbl ? Therefore value of exploration programme = $30 MM. 6. Roughly 900 MM shares so value per share = 3.33 cents.
I think my numbers above are probably conserative and no that for declining resource you can't apply PE ratios so anyone more clever than I come up with a better estimate.
I am also firmly of the opinion that VPE has bought a blocking stake so no-one else can take out ITC and they are either going so sell of their CSG arm or find some other method of taking ITC out.
Maybe they should make their own sandwiches for lunch as the ITC boys clearly are so they can save up for ITC.
cheers,
Oilman.
ITC Price at posting:
4.8¢ Sentiment: LT Buy Disclosure: Held
