texon milestone reached, page-12

market cap @$0.84 (235m shares) is about $197m

Current cash = about $40m

Current production (net interest)= 1,200 BOEP (840bopd + 2,380 mcfgpd)

Current POO = US$107+

Extrapolated annual revenue = (840bopd x 105poo x 365)+ (2,380 mcfgpd x US$7*/mcfg x 365)= US$38.3m

(*Note: Approx gas price = Henry Hub + 70%)

Gross margin of about 40% = US$15m

Assume USD = AUD
Admin costs of about $1.5m
So EBITDA about $13.5m

Cash ($40m) + 11.5 times curent EBITDA (11.5x$13.5m) = current market cap.

Even allowing for the natural decline of the current & planned wells - SELLERS....YOU'RE GIVING MOST OF THE 2 NEW EFS DRILLS, WILCOX, SCARBOROUGH (which alone could add up to $2/share!!!) + COOLONGATTA WELLS AWAY FOR FREE!!!