RE:Undervalued
Hi Firebird,
I agree that it does seem EW is worth more than something like 40mio.
I am still not sure how to calculate what to expect from a well. production/day x 365 days?
If this is the case and the E-site flows 100boed/d to EW we are talking about 180k boe a year. With net backs of let's say 60/barrel this should be something like 10mio/year which is nice pay to wait and see how the 12 wells in Romania will work out.
And as they keep drilling in NZ they might be able to increase production and on the other side be able to pay for Morocco and generate new projects.
Seeing them buying back shares for sure is a good sign as this might mean independent of what the Test on Cheal South or the drilling Southern Cross will show management thinks the company is worth more.
If G1 with 6m of pay is economic and Southern Cross is a hit too I think we will see prices rise again if both fail there might be more pressure and we might have to wait until a quarterly report that does show production fromm all 5 E-wells...
So I am happy with my shares although I am down 40% or so but I am willing to wait until Romania shows us what it's got...
Just my personal thoughts. DYODD
carinthian