Australia's largest stock trading and investment forum Australia's #1 stock forum

AXT

Click for more information

0.00%

1.4¢ argo exploration limited

Substantially Undervalued, O&G Situation in play, page-141

First 141 Last

Share
Profile

Follow
Sector

19,194 Posts.

598

07/12/15

20:46

Post #: 16564308
Share

Originally posted by Last of the Mohicans ↑

Hi squidd,

Yes, without doubt they are wanting to cash-out early.

I'm kind of doing it the other way. I'm looking far forward to work out the value that any buyer when running a valuation model will come up with. Once I have that figure on a per well basis, you can then apply a discount to it (ie the return a buyer would find acceptable on there overall investment) and then come to a number.

In the case of VOBM#1 for example, that $11.45M figures comes from 1.8mmboe of total production (0.9mmboe being PANR's share of that production).

So I don't see anyone paying more than $10 per boe in the ground in this case ($9M net per well to PANR) given the price criteria I've used. Obviously if the price of natural gas or oil rises then you might get a bit more. If the EUR per well turns out to be higher than this (& I think it might) you'll get a slightly higher price.

Apply that across West Double A Wells (assuming VOBM#1 is an average well in this field) and PANR could realise around $333M for its share of the field.

Effectively doing it this way, its hard to over value the likely boe in the ground number.

LOTM

Expand

Nice call here LOTM, where is your sell target?

AXT Price at posting: 10.0¢ Sentiment: None Disclosure: Not Held
Upvote

0 Great analysis

Reply

Top Stories

The iron ore comeback: Can it last?

TI1

Coda Minerals (ASX:COD) enters rights issue to further exploration in South Australia

ACW

Actinogen Medical ramps up Alzheimer’s treatment trials, targeting fast-track global approvals

ZNO

Zenith's sale of Develin Creek delivers $975K cash, with shares up 13%

HAW

Hastings progressing Yangibana to production with lower costs

There are more pages in this discussion • 65 more messages in this thread...

First 141 Last

Add AXT (ASX) to my watchlist