Then one method of valuation is price/flowing barrel.
Using a valuation metric of $213,000 EV/BOPD which is the average of CLR, KOG, OAS, WLL being comparable (however larger cap and more stable US oilers). Then to reach a SP of 2.5c would mean they would have a market cap of $125mil and need to be producing 586 BOPD.
5c = $250 mil and 1,173BOPD 10c = $500 mil and 2,347BOPD.
Whilst they could achieve 586 as the IP from one well they will need many wells online to achieve that as a steady state after the decline from IP.
GGP Price at posting:
10.0¢ Sentiment: None Disclosure: Not Held
