Originally Posted by
Unicorn
I think your Tui value of $600M is incorrect if calculated at current figures.
Another 33M barrels to be produced (47M as announced less the 14M produced thus far).
Production cost is US$545M, being the FPSO lease announced recently.
Income from 33M barrels @ $140 is US$4,620M (excludes freight and quality adjustments, for simplicity)
Net Profit = US$4,075M
@.75 exchange rate and 12.5% interest in the field is NZ$680M to NZO over 14 years
Less accounting profits royalties say 17.5% = NZ$561M
Spread over 14 years, with production and FPSO lease loaded towards the initial years, at 10% discount rate is currently worth NZ$400M
Less tax @ 30% gives NPV of $NZ280M after tax - about half your figure.