place in pre open at company's request

  1. 3,353 Posts.
    Does anyone have any ideas on why this one has been suspended pending an announcement by the company?

    Trading has bounced from a low of 0.3 a few weeks back to a very heavily traded 0.5 last week. Logic would suggest that it would be good news, but who knows.

    Their last quarterly report said " Forecast cashflows show that the Company should be able to meet its
    commitments through to the period of first oil flowing from the Main Production Facility." so hopefully they are not going broke.

    I wonder/speculate what their 2.5% of the Oseil development is worth. An old Oil and Gas Bulletin of Sept 10 says reserves for the project could be 100 million barrels of oil.

    Let's crunch the numbers.

    2.5% x 100 m barrels = 2.5m net barrels to KRZ.

    Value that at NPV of A$5 a barrel = A$12.5m
    Value that at NPV of A$7.5 a barrel = A$19m
    Value that at NPV of A$10 a barrel = A$25M

    If KRZ has 1,064M shares, then the Oseil 2.5% is roughly worth:

    At $5 a barrel, 1.2 cents a share
    AT $7.50, 1.75 cents a share
    At $10, 2.3 cents a share.

    Who knows. I'll cry if they go broke, esp after matrix.

 
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