Ann: Commencement of Expressions of Interest Campaign-AZZ.AX, page-5

Sorry to be the one to break the bad news...

BPT paid 11.7x - 13.9x per Mboe.

Based on this information AZZ has 0.1Mboe.

This equates to $1.2M AUD - $1.4M AUD. That's the comparable valuation.

At least I finally know where I stand... I wouldn't expect anything from this anymore.

I don't understand what happened to 40.3Mboe in the Annual Report from FY14 (post Southern Star). Although upon rereading it, under 'Net Reserve' it says '(Revision)' so the 40.2Mboe was obviously revised down to nil.

It's been a dud all along.

We have 15,000 acres with 0.1Mboe reserve and the leases can be reacquired (i.e. anyone can grab them).

I hate to admit but that little glimour of hope I had of getting something back was premised on there being 40.2Mboe reserves, not 0.1Mboe.

I could not figure out why no-one was interested in acquiring this but it all makes sense now...

And no I'm not doing this to downramp this. If you read my earlier posts I'd always assumed and stated had 40.2Mboe not 0.1Mboe.

I guess what doesn't kill you makes you stronger.

What's even more frustrating is before I invested last year, I had conducted an EV/reserve ratio check based on the 40.2Mboe. But in my hurry to catch this $250M US deal with no conditions precedent, I missed a simple table (albeit because the heading Net Reserve is confusing).

Would I have invested if I knew there was nil reserves and a $250M US buyer?Probably, but nowhere near what I did.

I guess we all make mistakes especially at the prospect of making money.

Does really make you wonder:
1. What exactly Wade Energy wanted to pay $US 250m for?
2. What caused that 40.2Mboe reduction in reserves.

Annual report below