"Currently the cash backing is 18.9 cents per share . Deduct the equivilent cash from the market cap and we have a shareprice of 28.6 cents (5.7 cents pre consolidation) ."
Based on the Santos Takeover offer for QGC they implied 50-60 cents per gigajoule of 2P reserve . Bailieus reckon the current drilling program will at least give MPO a 2P reserve of 300 Pj, implying a comparable yardstick valuation of $2.50-$3 per share .
That's right, $2.50 - $3 per share of Queensland gas (forget NSW, China, South Africa, North America) is currently selling on the ASX for 47 cents per share, and is backed by cold hard cash of 18.9 cents per share .
