Analysts Report - DJ Carmichael, page-6

Current valuation is all a bit too pointless IMO. Current valuations can only value prospective resource, which in the case of 88E is irrelevant as we are not selling ourselves (even partially) at the current prospective resource rating only. We are an exploration company and we are hopefully (expectedly?) on the verge of discovery and catergorisation of contingent reserves for some of our acreage. GB's transaction with OEL was for prospective resource and IMO has little to no relevance for 88E.

Remember this, if PB's estimates are proven to be bankable, that means that our acreage is holding approx 10,000 bbls of unconventional light tight oil per acre. On average. Across the JV's entire 690,000 acres. Clearly it will be a lot higher in the sweetspot acreage and a lot lower in the non-sweetspot acreage.

So the time for talking valuations is sometime after we have discovered reserves - later this year. And the value of the acreage will reflect the 'oilyness' of those acres and the expected costs of development and extraction. Not the cost of OEL's transaction for prospective acreage. IMO.