$83m market cap @ 15.5 c/share. Deduct $50m cash from the $80m...

$83m market cap @ 15.5 c/share.

Deduct $50m cash from the $80m market cap, you’re paying $30m for:
- company infrastructure, people, drilling rigs, ASX listing etc.
- reserves: @ 10m and $10/barrel, this is $100m
- current production: focused drilling on best areas

Based on fundamentals, that's very cheap - even with much lower reserves (or no reserves at all).

In my view, Yeager’s new management team looks interesting. They should be able to source quality deals and are putting in place the experience to assess them. But will take months to feed through.

A thought on returns:
Yeager says he can find better returns elsewhere than current assets. Not very specific - numbers would be helpful.
Clearly, getting the oil out of the ground has been more difficult than anticipated. Even with a much deteriorated outlook for current leases, current oil price of $100 certainly supports targeting lower flow rates. JP Morgan just updated their 2015 WTI forecast from $85 to $108.
Would be interesting to know if Yeager thinks that he can find e.g. 15% returns elsewhere compared to 10% on current assets. Or how this is being assessed.
Right now, it's difficult to assess both current assets and the dealmaking strategy financially.