Well managment here and at Austral already think that there is several hundred bcf of gas and moderate condensate in Douglas A (16 sq. kms closure) and we still have Douglas B, C and Puk Puk still to drill (approximately 53 sq, kms total, + other prospects and leads). The potential is certianly very much at RIFT, see the IPO listing document for further details. The commercialisation report will detail the future strategy for the development of Douglas and the potential for the licence and what we are going to do with our rig. Considering the JV's or revenues possible from our rig £10m would look cheap for the market cap. It all depends on how much gas and condensate you think is there. On top of the rig we've got about 1-1.5mmbbls of condensate priced in, if you think that the p50 of 34.8mmbbls gross and 1TCF represents good value then you are in the right place. If you are looking at P50 when appraised then RIFT could easily become a £100m comapany on 65% wi (currently £15m). If you are in at the right price you will do well here. We fell due to lack of strategy and lack of activity, the upcoming report should address that.
Happy new year one and all and I'm sure we're all looking forward to some more lift from rift. ;o).
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