AYO unknown

high impact exploration wells !!

  1. 1,201 Posts.
    On 16 April AYO embarked on a 3 well programme of high-impact exploration wells in Turkey. These are Cayirdere-1 + Adatepe-1 + Yesiltepe-1 !!! May be followed by Whicher Range which is subject to negotiation 2 Korean companies.

    AYO Gas sales and profits:
    AYO is set to return a small profit this year and show earnings of 8 cps in FY2004, as gas sales from the Gocerler field climb from around 15 mmcuft per day to a targeted 20 mmcuft per day by July 2003.

    Valuation by D.J. Carmichael consultant:
    Our DCF based valuation comes to 77 cps based on the value of the Gocerler gas field alone. This valuation gives no value for AYO’s exploration permits in Turkey or Australia. We believe it is useful to provide an insight into the level of upside should exploration be successful. For example, a discovery at Cayidere has potential to add 12-14 cps to our valuation while a discovery at Adatepe could push the valuation towards $1.40 per share. Clearly success at Yesiltepe would add further to corporate valuation, volumes, deliverability and type of any hydrocarbons discovered would determine the quantum of this valuation.
 
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