According to "SM71 Project Timeline & Platform Capex – July 1, 2017- Sep 2018" page 16. They expect 3000 BPD from 2 wells in SM7. Expected to come online in Feb 2018. The 3rd well is to be drilled in June and come online in July. Expecting a total of 4500 BPD. This will fund a further 3 wells in the area.
They project a net of $US2M per month from their share of that 3000BPD. However this was back in July when the price of oil was sub $50 per barrel. So lets adjust the figures to $US2.7M per month. or about $US90K per day or $AU112K. With that number going up in July when the third well is drilled.
So possibly a buy.
BYE Price at posting:
32.0¢ Sentiment: Buy Disclosure: Held
