bloomberg edge notes, page-12

Easy,

Its the value of all the equipment, buildings and other fixed assets along with any cash at bank.

It is a great tool for small cap companies because (I assume BOW has no debt) if the worst case scenario occured and BOW didn't find another kilo joul of gas or oil then whats the value per share each shareholder likely to receive at the minimum on liquidation.

It helps quantify the absolutely worst case downside scenario. Just like people sit here and apply fwd multiples and $ per barrel of oil to reserves to get your upside values.

It's also great because it shows you how much of the price of the stock you are buying is the premium given for its exploration and reserves and how much is just cash sitting in the bank, equipment etc.

The point is, if MEO has a BV of 10c and is trading at 50c, you clearly know that the market is valueing its reserves or potential reserves at 40c (may also include a takeover premium).

If BOW has a BV of 10c and is trading at $1.40 well then that seems to indicate either 1. BOW's reserves are or going to be more extensive than MEO or maybe a bigger takeover premium is in the stock.

These figures are obviously just plucked out of mid air, but you get the picture.