A logical crack....I don't think you'll get that from...

A logical crack....I don't think you'll get that from Hotcopper!

Anyway here goes (my cigie packet value).

200m shares (fully diluted).
Cash in the bank: $9m + $11.5 (from options).
= 10c a share.

Currently valued at $39m (fully diluted at 19.5c a share).

Let’s take the ideal $1 a share which would mean a $200 million company. Can the share price get to this on what we have in the ground? Is what is in the ground worth $160m?

Personally don't think so if we get a joint partner. But if we slowly went with a drilling program on our own then yes, I think it could be worth $160-$200 million.

1 well in the cooper basin costs around $1-2m with stabilised flow rates of 2.5 mmscf/d = #2.7m a year at $3MCF

So every year one well pays for its self.....the rest is cream.

5 year plan:
Cost of 5 wells 1st year = $10m cost. Gas sales = $13.5m
Cost of 7 wells 2nd year= $14m Gas Sales = $18.9m
Cost of 10 wells 3rd year= $20m Gas sales = $27m
Cost of 10 wells 4th year = $20m Gas sales = $27m
Cost of 10 wells 5th year = $20m gas sales = $27m

(Haven't taken into account for the drop in flow rate after the 1st year so just haven't included it at all in the following years....so please take this into account....or royalties to the government or maintenance or wages included either).

After 5 years = 44 wells
All producing at a MIN 1 mmscf/d = gas sales of $48,180,000 a year.

At this point yes the price would be $1 plus....if not well before the 5 years is up.

Please don't base any investment into AQO on the back of these figures.....because I'm not.