Ann: Maari Presentation , page-21

I must say woofa (and everyone else) PE is a very flakey way to measure oil companies - both big and small.

PE assumes a repeatable ongoing business and oil discovery is definitely not one of these types of business.

An oil company's base value needs to be measured on any net cash it has, plus a value for any proven reserves it has, and then an arbitrary value on its future prospects it owns and then also a punt on oil prices as well.

I must say in my opinion that Cue must be very close to its cash and reserves (if not below) at 15 cents. Future prospects valued at NIL, potential increasing reserves at Maari also NIL. Now that's what makes it good buying, not its PE.

Also bear in mind that when reserves are turned into cash that usually is worth more to the company (depending of course what they do with the cash).

Forget about PE's for oilers. You may as well add the phonebook.