BYE/OEL relative values, page-3

To be fair - both companies will have the same short term cashflows as SM71 is the only drilled prospect for each. BYE had 22.6m cash inclusive of 8m of convertible noted at quarter end. OEL had 16.2m with 8.2m of convertible notes, but has since raised 12m in a placement and SPP- giving an equivalent of 28.2m - or 5.6m more than BYE. Tey have since drilled ST224 independent of BYE, which should see OELcash reduced to being roughly equal to BYE.

The key differences are how the convertible notes can be converted - BYE at 10% VWAP discount, OEL at 5.5c; and other prospects - BYE in GoM with the leases surrounding the SM71 dome, and OEL in Alaska. With OEL having a farm in right to a BYE GoM asset, there is a limited short term differential here.

All in all, the discrepancy appears to be due to placement/SPP overhang for OEL - with probably around a weeks worth of trading to clear this. This was evident today, with the 5.8 line being constantly restocked and eaten up.

Great prospects for both, and BYE have the tech advantage - but OEL is clearly undervalued based on assets.