Member Info for scottology

I think others have stated, there is clear potential to be valued at £1billion plus here, which is well over £3 per share. Very quiet board as only sensible investors here, not a company you can short, so doesn't attract the pump and dump merchants. Should be a nice steady rise to completion and then we should see significant gains once we're reporting the profits come June.

I've used a PE of 10 in other figures, and yes they all look wonderful, particularly from where we are today. I do think 20 could be achievable here long term depending on what new assets they acquire or bring online, but we will have to wait and see how the market values this.

Once transferred will increase production to 7.8 million barrels of oil equivalent per year. Base 35p therm selling price to BP, so limited downside, but can sell above this at market rates. Gives £20/boe against opex of £10.50, so net profit of £9.50/boe = £74million profit per year x 20 P/E ratio = £5.51 per share

Laice1, does that include the payment to BP? Looking at a 4 bagger on very conservative 10 x PE

18.5k boepd from BKR assets will produce 6.7 mmboe per year 35p therm selling price x 55 per boe = �20/bbl Production costs $14/bbl (�10.5) = �9.50/bbl profit = �63million profit per year �12.8m + 60% (�38.4m) + 50% (�32m) + 40% (�25.6m) + 40% (�25.6m) = �134m paid to BP plus other contingencies on price. So that's bear minimum BP is getting. Discounted NPV is �350million, double where we are now, and that doesn't take into account profits and potential dividend

H1 2017 average realised prices of US$51.5/bbl for oil (1H 2016: US$36.6/bbl) and approximately 42 p/therm for gas (1H 2016: 30 p/therm). Hedges prices with a floor of 35p/therm giving us minimum �74million based on boep Actual prices are 20% higher than this, so �90 million profit /year

Once its compelted, and were producing �74million profit per year, it will show in the accounts and I'd suggest will become dividend paying. Maybe that's what the market wants?

Integration of the assets? It's a lift and shift of title from BP to SQZ. All assets in place and currently producing, same staff TUPE across too. Only thing that changes is the profit hits our bank account rather than BPs

We�ve gone from 1mmboe per year, to 7.8mmboe per year, that�s a 7-fold increase Before suspension, trading 28p, so we�ve only doubled since then. On same basis we should be sat at nearly �2 per share now.

BP is trading at P/E ratio of 34 for comparison. Sure we will probably need to join the main market, but that's not an issue once we have the revenue coming in from these assets. It's a �74million annual profit. so we should be ftse 250 atleast.

Yes, and we are trading at P/E ration of just over 2, yes 2 x earnings. 20 x earnings would be more realistic, so expect 500p once transfer complete.

Once transferred will increase production to 7.8 million barrels of oil equivalent per year. Base 35p therm selling price to BP (who are taking 100% of the production anyway) Gives �20/boe against opex of �10.50, so net profit of �9.50/boe = �74million profit per year x 20 P/E ratio = �5.51 per share Solid 8 bagger here and all being transferred from BP so production is instant on completion.

Lets get started here folks. Independent reports confirming BKR assets NPV10 2P reserves (proven) valued at �1.18 Erskine valued �0.19 Combined NPV10 of �1.37 This is today before we have the production, so easy double your money.

Sure, Now building in Erskine NPV10 2P Reserves $68,352,000 (�51,264,000) = �0.19 per share So that gives combined NPV10 of �1.37 for BKR and Erskine based off todays figures. These will increase as 2C reserves come into play

Remember that they hedged with BP at 35p/therm for varying % of production over 4 years. Actual estimated selling price is between 42p/therm 2018 up to 51p/therm in 10 years. So my 500p valuation is on the conservative side. Top side would be �28/boe less �10.5 opex = �17.50 profit per barrel = �129.5million per year �0.49 per share x 20 P/E = �9.82 per share

NPV10 $414,205,000 (�310,653,750) = �1.18 per share. That's for BKR assets with no decommissioning. Add in the expansion at Rhum, Columbus and Rowallan and this should be more in line with your �1.80 figure.

Yes, 500+ after year 4, but that's based on the figures released in the admission document. Keith is end of life, Rhum has potential to expand, which should offset the decline expected at Keith. Bruce is also late life, but still producing at good rates.

I bought a small holding while I try to figure it out. Definite value here, but I'll keep reading as looks positive.

Sorry I was trying to figure out what BP was getting for the assets. 18.5k from BKR 2.8k from Erskine So adds a bit to annual profit. $165million tax pool to claim against.

Producing 7.4 million boe per year At �9.50 profit based on my previous post Generates �70.3 million Shares in issue 263.68m = �0.26 per share x 20 P/E ratio = �5.33 per share once all costs to BP paid 2018 would see �0.12 earnings per share x 20 = �2.41 Scaling up year on year to �5+