Currently trading at 25 cents or $32 million market cap. but a look at their presentation indicates that the Gabriella prospect offshore Israel could be worth multiples of the current market cap.  The unrisked barrels of oil equivalent is shown as 128 million barrels, of which BWN has a 15% interest.  Thus, if they hit oil with the well, BWN's share would be in the range of 18 million BOE, which at $10 per BOE would be worth about $180 million undeveloped, much more once it is in production.  It is close to shore and easily hooked up for production, this is not the North Sea.

But what are the chances of success? After all $180 million would be nice, but they have to actually find the oil.  Well, in the past two wells were drilled, the first was in 1970, no 3D siesmic I assume, and it completely missed the target, resulting in no oil, but the next well, in 1994, was closer to the target, it hit the edge of the structure and produced 800 BO/day, not bad for just hitting the side of the structure.  The current well in 2013 with the benefit of better siesmic etc. is to be drilled right into the structure.  My own view, is that if they can hit 800 barrels a day on the edge of the structure, there is a very good chance that not only will they hit oil when they drill directly into the structure, but the flow rates should be very good.

Thus, my conclusion is that BWN has about 500% upside or more, very little downside at current prices.  But that is why I own a bunch.  I also own a bunch of ADL which also has a 15% interest, but is in the process of raising funds, so I only have a small position until the funds have been raised.

The drill rig is currently drilling another well for another company, but Gabriella is next in line for the drill rig.