royalty should triple to $45 million (40 cents a share) /yr
Lookintoretire. You are right man. I didn't explain myself fully in the prior post. So let me clear it up. I think with the added capacity at Bauer to 50,000 barrels (oil and water), plus the tie in of huge gas wells in PEL 106, plus additional shut-in production on the permits, plus allowing for additional discoveries in the huge and prolific permit areas, we will see at least a doubling of production, but probably a tripling of production within 2 years. That means that the royalty that NWX is currently receiving which is $3.8 million a quarter or $15 million a year, will increase to $45 million a year or $0.40 per share fully diluted. Is this projection too optimistic ? Not really when you consider how quickly the Drillsearch has gone from zero production to 13,000 barrels a day oil (that's just 8 wells) in the Cooper Basin permits covered by the NWX royalty in the last two years. Exploration and development is now accelerating in a major way which means exponential growth. Getting 13,000 barrels a day production from a $7.5 million investment is not just good, it's exceptional. This stock is so undervalued it's not funny. Should be trading ABOVE $2.00 a share NOW based on CURRENT production and FULLY-DILUTED shares. As always, if you're not happy, please sell your shares so I can continue to add to my position. I am not desperate for more, but I'm gladly picking more cheap stock like I did this past few weeks.