RE: Valuation from SP Angel9 Jun 2019 10:43
A large onshore gas discovery with proximity to existing gas pipelines and infrastructure•Compelling economic value from the gas discovery’s contingent resources alone–Operator’s evaluation of Kirkham Abbey gas only: 52.5% ROR and NPV10% US$247MM•Significant value upside potential from the Cadeby oil prospect–Operator’s evaluation of Cadeby Reef oil only: 105% ROR and NPV10% US$850MM•Additional upside value potential from prospective resources in other gas targets •UJO has entered into a Heads of Agreement to acquire a 16.67% interest in a compelling gas discovery on attractive terms–Delivers Contingent Resources of 5.3 MMboe and significant prospective resources to UJO–Materially accretive to asset value and market worth based on UJO drilling cost so acquiring•Kirkham Abbey Contingent Resources only: NPV10%* ~$7.84/boefor < $0.30/boe•Adding Cadeby Reef oil Resources only,improves metrics–Contingent and Prospective Resources: NPV10%* ~$9.92/boefor <$0.10/boe•A successful appraisal well in Q1 2019 would deliver a major onshore gas development–Contingent Resources require a development plan to convert to Reserves•A compelling project technically and financially