Everest I did answer your point - why is the EV/2P lower than for peer companies? But let me try another approach to hopefully clarify it for you:
1. The market responded to the increase in reserves last year, but then production declined, so the market couldnt reconcile the two.
2. When those two metrics are out of kilter, the market (I believe) will take the conservative view and place a stronger emphasis on production figures as a measure of what the company is actually capable of converting those reserves into (i.e. one production bird is worth two reserves birds in the bush)
3. When the production growth curve has put in a compelling enough track record, that balance will change as the company's EV/bopd value demonstrates the company can convert reserves into production.
Why would you consider a sale of reserves to a farminee hocus pocus? It is common practice for explorers to farm out prospects once they have added value to them by proving them up, in order to raise cash for development of other projects. Presumably you took the same view of AUT when they got Marathon to farm in to their Sugarkane prospect - and now look at them - I could cite other examples.
As to drilling of dry holes, thats part and parcel of early stage prospect development - its part of defining exactly where the oil is so future wells have a higher probability of success and are drilled with the know-how gained from the early wells.
But if you are an experienced oil and gas investor, then you would know these things - yet you push a different message, which makes me question why. Oh I forgot - because you are short.
Cheers, Sharks.
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