RE:RE:RE:Valuation using Netback repostSlyFox1 wrote: yycblackgold wrote: yycblackgold wrote: Don't forget that is $55 USD/bbl which is WTI, the oil produced at Selat will command Brent pricing which is $62 USD/bbl !!!!
I think a question of netback was also brought up.
OPEX is quite low in Indoneasia but using a North American OPEX of $10/bbl, leaves $52/bbl, take of 25% or $13/bbl for royalties leaves $39 USD /bbl netback or or $53 CAD/bbl.
Assume production gets back to 880 bbl/d oil (not including the gas), daily cash flow is $46,332, monthly is $1.4 MM, yearly is $17 MM. Now take 25% of this and you get SNV's yearly cash flow for just the proven producing production. This results in $4.25 MM / year multiply by 7 times cash flow get you to $30 MM market value of SNV
Next add in the upside development of 8,000 bbl/d and do the same calculation = $155 MM / year (25% = $39 MM / year). Conservatively take 5 times cash lfow = $195 MM CAD market value.
So in addition to my other valuations, the netback method provides a market value of $30-$195 MM CAD or $0.38 - $2.44 per share.
So with brent 70, does this mean it is now 1.27 times more or $0.48-$3.09 per share, and is this in USD? if so it would men 60 cents canadian to $4!!!