re: dynamite report out -thanks fish3
The estimate of 96 cents is the figure given in the broker presentation (Page 32) to the value of a successful Gilbert well to EBR. But that ain't all folks! The Maclean well, where EBR has 25%, is said to be worth $4.13 and the Cooper Basin wells another $ 1.72 (if 2 of the 5 wells are successful.) These estimates are based on a nett oil price of A$50. EBR still anticipates that the 7 well programme will start in October and they have plenty of cash to finance their share without another capital raising. They have options due to be converted in March next year. Finally, there is an excellent post by Coaster on the Fixx Oilers site (NZ based) which explains the attractions of these options.. The leverage is considerable because anyone converting them at 12 cents per share will then be entitled to a free 2009 EBROA option with a strike price of 15 cents.
EBR Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
