What is the realistic value of the Heintschel field? Net present value of expected production with oil at $73/barrel is $24,7m (ASX ann of 8 July). If a farm in or sale is achieved, value will be comfortably over 3c/share imo on cash backing alone, obviously dependant on the terms of the transaction. Question is how close to fair value is achievable in a market where bargain hunters abound? BUR history of lease trading is far better than their history of extraction.
BUR Price at posting:
1.0¢ Sentiment: None Disclosure: Held
