AAOG company value potential17 Jan 2019 15:23
hi guys, here is a little calculation that may be of interest.. so here goes, assume $65 per barrel avg x5000 from Djeno minus $25 operating cost per barrel= $40 per barrel x5000 bopd= $200,000 per day. 30 days is $6 million, 12 months is $72 million. price earning ratio for oil companies is 20, so 20x 72million= 1,440,000,000. divide by % share, which is 58%,
so 835,200,000 and then divide that number by number of shares in circulation, which is a relatively small number for an oil company 237,929,038 as of yesterday on their website, gives a share price of £3.51 at full production! This assumes the percentage of the company stays at 58% (may rise on signing of new license xtension) also that they can handle 5000 bopd, also assumes one well, I think that Sefton hinted at a second in the last proinvestor broadcast? also that mengo and r1 and r2 aren't exploited. also oil price isn't quite at $65, more like $61 but set to rise this year in the forecasts towards $75 potentially. Just a thought IMHO.