Bass Strait oilfield developer 3D Oil put out some more detailed financial parameters today to illustrate the value proposition behind its 50% owned West...
John Robertson
PortfolioDirect
Bass Strait oilfield developer 3D Oil put out some more detailed financial parameters today to illustrate the value proposition behind its 50% owned West Seahorse project. The development partners will have to spend up to $150 million to produce around seven million barrels of oil with a net present value of $130-140 million, starting in late 2014. A true guide to the value created for 3D Oil shareholders needs to take account of the $44 million committed in May 2007 which will have had to wait eight years for a completed development. Investors coming in now (or those who bought when the market capitalisation was as little as $14 million) are going to be much better off than those who have been engaged from the beginning but too few companies take account of the equity contributed by shareholders when they are trying to demonstrate investment attractiveness.
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John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business strategist and investment market professional for over 30 years after starting his career as a Commonwealth Treasury economist in Canberra. Since being Australia's top-rated commodities analyst and chief economist at one of Australia' leading stockbroking firms, he has advised companies across the mining, consumer products, IT and biotech sectors on their equity market relations. He leads the firm's investment evaluation and security structuring activities on behalf of the Australian Small Scale Offerings Board (ASSOB), the world's first equity 'crowdfunding' investment platform. John Robertson discusses the interaction of mining and investment markets in his weekly 'From the Capital' column in Mining Journal.
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John Robertson
PortfolioDirect
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
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