TD tuesday Tuesday will be 60 days of drilling. So we should have news either on tuesday or wednesday. According to my computation if we strike oil we the stock price should be lift up to between $2-$2.5.
For instance Rockhoper exploration when they strike oil on sea lion the share price valued the discovery at around $2.3 per barrel the day they find oil.
If you apply the same metric to OYL it gives a market value of around $700MM or $2.14 per share the day we strike oil.
Then when Sea lion was fully appraised (8 appraisal wells to derisk the field) the valuation increase to around $4 per barrel. Then when they find the financing/JV partner and begin the production the value should increased to around $8-$10 per barrel.
Should we strike oil as anticipated we will fly to around $2.14 a share
Should we failed to find oil we will collapse to around 50 cents.
Anybody dare to comment on valuation ?