Cheap,Cheap,Cheap !!!!

I thought i would do a back of the envelope valuation for Byron Energy based on facts we know and the usual p/e ratios used in the sharemarket for the oil and gas industry.
1.On current prices the EBITDA for the next 12 months will be $50 million aussie
2.The net profit after depreciation and interest will be $47 million aussie .
3.There will be a free carry on all the company's existing and future leases.We have been told that SM71 will flow for at least 8 years by otto energy in their recent presentation.
4.The company is currently capitalized on the asx at $264 million.
5.The number of shares issued is 685 million.
6.The normal p/e ratio for oil and gas companies is 20 times .
7.Being very conservative and using a p/e of 10 the value of the company should be $470 million /divided by no of shares issued 685 mill the share value should be 68 cents.
8.Using 15 times p/e ratio the company would be worth $705 million and the share value $1.03.
9.Using 20 times p/e ratio the company would be worth $940 million and the share value $1.37.
10.Accordingly on the above basis this stock is extremely cheap at present.