2 milll sell overhang, page-31

Qwerty, the theoretical value of any oiler is its sale value. At all times the company will transact at above or below this figure other than the day of the take over. Good markets it may score a premium, in dull markets like ours now, we get a discount. That value takes into account the size of the recoverable hydrocarbon assets, their stage of development(exploration to production) and any risk factors such as for sovereign risk etc. (not forgetting cash and other lesser assets the company may own)

As such it is possible for an oiler to go from 30c to $2.00 overnight.

The best example because it has some similarities is Hardman. It was cruising in the mid 30's when the commercial discovery news was announced and it immediately shot to $1.10, and then $1.30 after a couple of weeks.....now that was at a time of low 20's oil. We're 4X + higher, don't have their Mauritanian sovereign risk, have markets and infrastructure close which they did not and most importantly the Cua Lo target is substantially bigger than their discovery.

Interestingly like Neon they had two big wells in a row. The second was a duster and crashed the sp a month or so later to 45c before a slow climb to $2.50 at their takeover time.