salinas valuation significantly higher, page-29

Basically this means that they only need to drill 4-5 wells of their 14 well programme, due to start in a few months) to get production up to 2,000 bpd. This will provide net revenue of US$15m pa. They have plenty of wells to drill to sustain this rate as initial wells deplete. In all likelihood production will peak at much higher rates than this.

In other words, Salinas is going to become a very cash rich company for its size and be able to roll out it's multi-prospect programme towards the end of the year.

I think it is going to differentiated clearly now from the other junior E&P stocks in the US and move towards John Begg's goal of making it a medium-sized player.