strange stock, page-6

MrSteve or Anyone, I'm a novice when it comes to projecting future share prices so maybe you could give me a few pointers.

MD said on Boardroom radio 13/12/07 that BUR had $5mill in the bank and projected net income of appox $3mill pa from the first two wells. He also said BUR currently had a market cap of $15mill and as such was undervalued. In calculating the market cap I assume his calculation is 88,614,592 current shares on issue x SP of $0.17c. My question is based on the above numbers is why is BUR undervalued? Is there a rule of thumb for calculating the value of a company like this? and if so what is the calculation.

I also note that the above calculation does not seem to take into account the listed options cuurently 41.5 mill or another 17.8 mill of unlisted shares due in May 2008 or another $2,710,000 in convertible notes which going by the last conversion would equate to another 18 mill shares if taken up. Should these equities be taken into account when calculating the overall value of BUR?

If Jet 3 has potential flow rates as inidcated in the announcement of 10.8 mmcfd this would equate to a further potential net income of $8 mill pa.

So in summary $5 mill in the bank and income of $11 mill pa. What will this do to the sp and why?

Any info would be greatly appreciated.

Cheers