why not takeover aed by the chinese, page-9

Danube wrote
" And currently AED has net cash of $260m (considering the $85m converitable), and market cap is about $370m "

Danube
Using your figures, the market is valuing AED's oil resources at $110mil, ie market cap less net cash

If we use AED's reported 40mmbls contingent resource for Puffin, AED 40% share 16mmbls, thats $6.85 per brl using the $110mil figure above.

I dont think AED ever booked 2P reserves before the stuffups so $6.85 for contingent resources is probably fair enough compared to ~$25/brl for offshore 2P reserves.

If the upcoming drilling/remediation gets the flow rates up and elevate the contingent resource to 2P reserves, then the shareprice will rerate.

Interestingly, applying the 40mmbl resource to the $600mil Sinopec paid for 60% ie 24mmbls, this equates to $25/brl

So at least Sinopec are confident the recoverable reserves are there.

Holding NWE