Member Info for wahlberg

He is a good guy. When I had a few questions he suggested we had a chat to get to know each other. Called me from Jakarta.

Blanklook - Yes I get a similar range to you using *average* assumptions But I was being conservative and therefore used a 30% interest, the lowest value assigned per barrel, and factored in a fair bit of dilution I expect DW to exceed my expectations of course! ;)

Very difficult to guess, but here's mine assuming 3 assets before recommenced trading. Asset 1: 3 wells @400bopd, 360bopd net -> optimise and drill 7 more 10 wells @>1000bopd, 3000bopd net Asset 2: 1 well @500bopd, 150bopd net -> optimise and tie in 3 gas wells 1 well @>1000bopd, 300bopd net Asset 3: JV 3 wells @400bopd, 360bopd net -> optimise and significant potential on other wells 3 wells @ 1000bopd, 900bopd net 870bopd net -> ramp up 4200bopd Beginning with 870 barrels, 2.85p Following optimisation and production increase over 1yr, and share issue, 9.15p This is at the low end of benchmarked mcap. Potential with the JV and gas etc is tremendous.

Very difficult to guess, but here's mine assuming 3 assets before recommenced trading. Asset 1: 3 wells @400bopd, 360bopd net -> optimise and drill 7 more 10 wells @>1000bopd, 3000bopd net Asset 2: 1 well @500bopd, 150bopd net -> optimise and tie in 3 gas wells 1 well @>1000bopd, 300bopd net Asset 3: JV 3 wells @400bopd, 360bopd net -> optimise and significant potential on other wells 3 wells @ 1000bopd, 900bopd net 870bopd net -> ramp up 4200bopd Beginning with 870 barrels, 2.85p Following optimisation and production increase over 1yr, and share issue, 9.15p This is at the low end of benchmarked mcap. Potential with the JV and gas etc is tremendous.

Delighted I'm in

Olderandwiser - You're getting this mixed up. The break even onshore Indonesia is approximately $20-25, therefore at current prices the profit per barrel is around $25-30. So you can use this in calculations to estimate annual profit. If the company makes £x per year the mcap will likely be a multiple of this. The value of $40-60k per bopd is generally the range of the peer group. eg. net to CEB: 1k bopd / 360k p.a. x $25 / 1.53 = £5.9m p.a. Valuing at '$40k-$60k per bopd' would suggest an mcap between £26.1m and £39.2m Which, based on the £5.9m p.a. is a P/E of between 4.4 and 6.6. It's a ballpark figure.

Personally I expect first asset(s) to be announced next week along with the new name

It's not that uncommon to be honest. I'm sure even MXO raised at 4.5p which was a premium? Buying open market is easier said than done - imagine the effect on the sp if you were trying to acquire 10% of CEB for instance. Now may be a prime time with the suspension in place and 1/2/3 assets to drop.

IDIOT

triumph1, The placing may be done at the sp or even at a premium to the sp, given what's coming. So there is no guarantee that the sp will decline. And in your example you suggest the value of the company has not changed, which it has. You've ignored the fact you have increased your cash position.

I use £40k, so say £67.2m mcap on that bopd. Which alternatively would suggest about a 6 or 7 multiplier of EBITDA

Completely agree nesty. And on here and twitter it's the same question repeatedly. How will they fund it? It's been answered repeatedly too. We can farm-in relatively cheaply, giving the asset owner: a) short-term cash (relatively small amount); b) expertise (and THIS is the most important) c) funds to develop further I worked through an example a day or two ago on a well producing 400bopd which could be optimised to 1600bopd using the expertise of the CEB team. The asset owner gives away a 30-40% interest in the well and still ends up almost tripling their stake! Now, in terms of becoming a cash generating business. Let's consider some numbers. To begin, assume CEB get a 35% interest in 3 wells producing 400bopd. 420bopd @ $25 profit p/b = $3.8m / £2.5m p.a. or thereabouts. Then they optimise these wells, so instead of each producing 400bopd, they're producing 1600bopd. CEB interest is now 1680bopd @ $25 profit p/b = $15.1m / £10.1m p.a. And let's remember here I am considering perhaps only ASSET ONE. What if also we get the one with the gas to be tied in. And the JV with the state. So yes I think we will raise, add, and see that mcap >£50m quicker than the doubters want you to believe.

Replied to this already but post has disappeared. Can't fathom how you can digest this news and say it is disappointing. It's great news. How else would they fund great assets? Of course a placing and therefore 'dilution' will be required. This is welcome because we will soon have some fantastic assets. And of course trading at a premium to today regardless.

AK, B/E is approximately $20-25 on these fields, so room for significant profit

Shareprophets is a rubbish site, articles created only to cause reaction and gain traffic.

Some people just hold this belief of a perpetual placing-lower sp cycle. It's crazy. This will not be the case. Placing is not to be feared here. If DW is going to the market you can be damn sure it's for quality assets like those mentioned that will add great value. The mcap and sp will be going up.

is a bit irrelevant to me. If it's an asset and trading recommences and the price goes up, I won't sell. If it goes down because it's not meeting some people's expectations, their loss, because more and more news will come.

Looking at the photos again, some date back to February, 8 to 9 months ago showing discussions with government etc. It's a long time in the making. Given Indonesia's future energy requirement and delivery plan, seems right the JV with state will come...

"Shows Simon outside a Pertamina facility. Are you seriously suggesting that this means CEB are acquiring one of their assets?" Haha, that's one of the funniest posts ever. Half the pictures show Pertamina staff, One is outside Pertamina’s Jambi facility One says "Simon (R) with VP of Operations, Gregor Mawhinney (L) discussing a potential asset with production operations staff in South Sumatra." again showing Pertamina staff

Rulix, what on earth are you on about?