looks like it will close gap to 1.97

Fundamentally this is a much more compelling gap to close once this has bottomed and production has started (with gas injection) providing flow rates are half decent. They of course will need to show that production will be ramping up to about 2500bopd (1900 barrels nett to INP) over a couple of years to justify this price.

NB 1900bopd = about $50m profit after costs and royalties at $US90/barrel, which for an oiler should give a MC of about $400m on a PE 8:1 - though with such a large reservoir production should continue for many years, so a PE of about 12 is probably more realistic. Note that at 2500 bopd the reservoir would last about 30 years assuming 30 million barrel reserve, or much longer with expected upgrade to about 250mboip with a 50-70 mbol reserve, so I would think they would ramp up production further to say 5000bopd or more once the field is fully developed.