Worth understanding the potential21 Dec 2023 11:07
From recent Q&A (CEO)
The Bamboo Field is actually made up of four separate oil fields. The initial oil in place is over 500 million barrels, it used to produce 20,000 barrels and now it only produces 4,000 barrels. The decline is due to the fact that there’s been no investment in the field, there’s been some pilot studies which say you can basically double production by putting head down the pipe. So, if you had 4,000 barrels and we double it up with thermal recovery, that makes about 8,000 barrels, fixing of surface facilities that’s another 2,000 barrels.
So, in the future, we could be up to about 10,000 barrels a day which equals to about $500,000 a day of revenue. We’re quite happy with how things are developing there and it should be a very lucrative contract for us, it should be profitable and money-earning from day one. There’s no upfront cost to us and all the infrastructure and wells are already there, we just need to squeeze more oil out of the wells which is not a difficult situation.
Going to repeat this as people DO NOT understand the gravity of this deal and the material numbers from DAY 1 that it will produce for WCAT.
$200,000 a day from Day 1 @ 4000 bopd
$73m year
x 4 PE (Super conservative)
$292m mcap forward projection usually by 12 months.
10.4p a share to start, the plan is to ramp to 10k bopd, that targets 26p at 4 x PE, super conservative.
Usually 8 x PE is applied.