Ann: Continue Suspension of Securities, page-8

Hi Maelstrom.

I'll leave Ikeng to confirm, but I have a feeling there are 3 prongs to his calculation and you have (and very accurately) only addressed the first and third.

The $140 million second part that he mentions is tied up with the value of Damon's latest "rabbit" that he's pulled out, with the Loba oil field drilling campaign starting in 6 months.

What he's saying is that given the 81% chance of success, the drillers are so sure they'll hit oil, they've agreed to cover the $20 million in costs, in exchange for a 10% grant.
This figure of 10% is naturally speculative as no number has been given or finalised, but probably not unreasonable.

If 10% is correct, then to retrieve their costs, the field needs to be worth $200 million plus.
That being the case and once the Government have taken their 20%, PVD will be left with $140 million.

His valuation therefore was calculated as:

* Settlement cash payout from Freeport $15 million.
* Loba oil field $140 million.
* Cash in the bank $7 million.

With 260 million shares, that equates to a share price of 62c.