OTCPK:WSRLF - Post by User
Comment by
canadafoxon Mar 07, 2014 2:53pm
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Post# 22296043
RE:RE:March-April a turning point for WZR
RE:RE:March-April a turning point for WZRD; Sorry to have to correct you but WZR have 40% WI and there is 10% KRG royalty plus UN payment to Kuwait to be deducted before anything is calculated on PSC. There may also be trucking costs in there too as a deduction. WZR have really excellent PSC terms from being an early entrant and after costs return they should get a headline 16% return. That is 40% of 16% of $85 ( approx ) per bbl or around $5.50 per bbl.
This figure has to be DCF's to give a proper return and my figure is $3 - $4 depending on size of accumulation. This may seem small but the prospects are large and costs have to be returned rapidly. WZR have $350m costs ( at a guess ) to come back in the near-term ( hence your $25 pb figure ) and this has to be added to asset. So, if we take conservative guesses of a current NAV based on likely contingent resources late-2014 we have;
$350m ( costs ) + 350m bbls * $3 ( Kurdamir ) + 200m bbls ( Garmian ) * $3 = $2 Bn ( neat !! )
This is against a current MC of around $450m...
No account is taken of Qula ( and much else in Garmian ) in the above,