Noticed a large amount of options have been bought over the last...

Noticed a large amount of options have been bought over the last few days! With 3 wells to be drilled between now and the option expiry date (Mudalee, Rowley and Zulu) of the 31st October 2013. Any hit of oil or gas and the options at 25c will be well with the money.

The Mudlalee Kruger well (60%) will target a mean recoverable oil potential of 380,000 barrels.

The Rowley structure (60%) is assessed as having a combined recoverable oil potential of between 280,000 and 500,000 barrels from the Namur and Hutton Sandstones.

The Zulu Block (50%) targets over 20 million barrels of potential oil in place. The top five gas prospects in the block target over 30 BCF of gas in place.

Just one of those wells coming in will put the options within the money. Lets take Kruger with a mean 380,000 barrels.

380,000 at 60% to AQO = 228,000 bbls of oil.

228,000 x $70 ($90 -$20 cost to recover) = $15,8960,000

Fully diluted shares on issue (shares + options) = 132353098

so a discovery at Kruger alone would add 12c per share