I bought then too, and kept on acquiring in the down years. Now, with all the financing they will need, and a big international company holding the reins, we can finally look forward to this, extracted from their March 2012 PR. It is based on $65 oil, does not include the acquisition of another 10 per cent working interest, and does not reflect percentages after the farmout. Still, it predicts that real value should start flowing. Patience has its rewards:
"D&M forecasts that the Probable plus Possible reserves on the half square mile (out of the total of 68 square miles of Deep Well's lands) chosen for the pilot project will yield an undiscounted future net revenue of Cdn $245,562,000 (two hundred and forty-five million five hundred and sixty-two thousand Canadian dollars). D&M arrived at this forecast by subtracting, from gross revenue, capital costs, operating expenses and Provincial royalties, but not after taxes or other potential royalties.
D&M forecasts that the Contingent resources in most of the other parts of the reservoir will yield an undiscounted future net revenue of Cdn $8,627,000,000 (Eight billion, six hundred and twenty seven million Canadian dollars). For planning purposes, Deep Well and its wholly-owned Canadian subsidiaries will use the Best (or most likely) Contingent resource case scenario.
To determine gross revenue D&M use an initial forecast price of about Cdn $65 per barrel, which is subject to market fluctuations and valid as of December 31st, 2011."
This might explain why Maurel and Prom thought it was a good buy to buy 20 per cent of the company at 48.8 cents a share, and to put up the needed working capital.
