Yesterday Otto Energy disclosed their intention to drill the Duhat Oil Prospect that has a range of 1 million barrels (MMbbls) to 88 MMbbls or a mean reserve of 34 million MMbbls [1 MMbbls + 13 MMbbls + 88 MMbbls divided by 3]. Given that the prospect is onshore, a discovery of as small as 1 MMbbls could be economically viable to extract and production could start as early as 2014. That said; we can have range for the value that Duhat Oil Prospect can contribute to the value of PERC. Below is my calculation:
*Profit margin is based on The Philodrill Corporaiton (PSE: OV) operaitons
Depending on the determined reserves, PERC can be worth to as high as P 18.56 per share.
- Drilling to Commence by Late July at the Duhat Oil Prospect, http://www.ottoenergy.com/IRM/Company/ShowPage.aspx/PDFs/1900-74974120/DrillingtoCommencebyLateJulyattheDuhatOilProspect
Disclaimer: I do not claim to be an expert and nothing I say should be taken as a recommendation to buy or sell. Read more in the ABOUT page.