Ann: MERGER WITH BLACKSPUR OIL CORP, page-34

Using a range of metrics and conservative multiples I get a blended fair value of 1.2 cents at current spot prices . If you put some kind of credibility on the growth strategy (more 2P reserves, modest drilling towards 5,500 a day, 4.5 X cash flow) and even a modest expectation of oil price rise, you get 2 cents fairly easily. This is the kind of short lifed Oil production the market is paying for at the moment, as long as drilling is cheap and not too extensive , we could be in a sweet spot for a few years.


9.5 billion shares, how will we trade: (RIP. Old Calima wiped out, maybe we sell it down the track for a token $20 mill to $40mill). A lot is going to depend on what spot oil price is doing come end of April , If oil price heavy we may struggle to trade much above 1.1 cents for a bit, if oil price still moon shoting as expected we may get some growth factored in, and 1.8 cents is not impossible for a bit, but consolidation 1.2/1.4 the more likely best case scenario.

It's all about the oil price , remember we do have 25% of production hedged