Ching production;
15000 bopd at net AUS$35/barrel and a p/e of 10 (approx life of Ching) = $2.90.
So $2.90 is a bare bones valuation.
Add whatever you want to $2.90 for Tiof, Banda, Tevet and blue sky of Guyane etc to arrive at what looks a fair valuation.
The worry is, why is Euroz selling. They did have a relationship with HDR which has obviously soured or they are churning stock so they can get a nice xmas bonus. Or they have inside info and were advised to liquidate their clients positions.
I suppose the answer will come soon.
Cheers.
HDR
hardman resources limited
