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I wouldn’t get hung up on the index
AIM or otherwise with a P/E of 4 the company earns enough to buy itself every 4 years. Ok there’s debt servicing but even still
If oil hits $100 and sticks this will be way higher.
It was producing almost the same as now! Maybe it’s down 5 pct?
So 86 dollar oil in 2018 translated into 3 x the present Market Cap
What other company on AIM has a P/E of 4? Nuts. This will triple if oil hits a $100. Which has to be very likely. Makes no sense.
The wells will be at target by now I suspect.
If it’s anything but the usual ‘shows’ ie something material on the logs they will mobilise a testing crew and flow test for a few days. If there’s no testing then it’s ‘dry with shows’.
Exactly you’re finally getting there.
So 1P is the robust case ( although CPRs are usually over optimistic) for the full field development estimated at 240 bcf back in 2020. So only 6 years P at 101 mmscf/d. So even if they wake up and start drilling the required additional development wells now this still hits the 1P limit in 2026 or 27. It’s most certainly not ‘ infinite’.
I’ll hold on and see what the plans are for drilling.
Mick 2P reserves need more drilling and work, all that is accessible with present do no more drilling is 100 bcf as of end 2020 so at present rate of production this all dies later next year. That’s what the report is saying. So I’m out. Good look pulling the wool but this will go into decline very soon and when it does the SP will tank.
Thanks for the clarification on resources Mick.
So 100 bcf PD ( Proven developed reserves) as of end 2020
100 mmscf / d means they are drawing 37 bcf a year so they will run out completely by Q3 next year unless they spend on new wells? This was my point.
Forget the 2P number there only a 50:50 chance they’ll reach that even if they drill baby drill .
They need to invest in future production asap.
Zak and his charts know nothing here.
This is a pure binary play on the results of the next well production rate. 300 bopd plus for 3 months and we’re back at 2-3 p. Another 50 bbl dribbler or less and its lights off time.