oil price whets merger appetite, page-3

It is amazing to consider that someone could pay say $1.50 for the whole of the company, and on an enterprise value basis would be paying around $350 million for a company that will be generating over $45 million in cash flow per year - apart from exploration upside.

And the reality is, I imagine, that due to the past two years share price performance they could dislodge a huge number of sellers at probably $1.25 or so.

Not saying any of the above will happen. Anyway, I think the primary thing people really care about at the moment are the reserves!! This will be the true indicator as to whether I should keep buying now, or just hold what I have.

MJS