another view

With thanks to Richrichie I've lifted the following from MEL's site since I feel it may be of interest to WCL holders.

But WCL offer? Is this for real?

Offer 65c, means price tag at $149,262,454.

But they have $15.7m cash as of 31/12.

So EV is $133,562,454

Thus valuation of offer is putting WCL at $0.675/gj for 2P reserves and $0.404/gj for 3P reserves.

Thats based on net reserves to WCL which is 3.5pj (1P); 221pj (2P); 369.5pj (3P).

But BOW was taken over by Arrow Energy for $0.15 per GJ (3P reserves).

Put MEL in context:

Market cap at $0.40 is $135,437,069

Cash is $17.8m (end of 31/12)

EV is $117,637,069

Thus valuation of MEL is at $0.275/gj for 2P reserves and $0.046/gj for 3P reserves.

Thats based on net reserves to WCL which is 2.7pj (1P); 428pj (2P); 2,542pj (3P).

MEL is similar size in 3P reserves to BOW, but double that of BOW and WCL in terms of 2P reserves.

Using the same metrics on BOW offer to MEL based on 3P reserves put MEL with a market cap of $401,399,138

Using the same metrics on WCL offer to MEL based on 3P reserves put MEL with a market cap of $1,050,960,345 (yes thats right over $1b)

Using the same metrics on WCL offer to MEL based on 2P reserves put MEL with a market cap of $306,545,533


So in summary, it doesn't take Einstein to know that MEL is but better than WCL.