confirmation, page-60

Malmoe, SEA isnt particularly cheap on an EV/production basis. It looks a bit cheaper when you leave in the gas, but if you compare only on oil, then its about fair value where it is - until they also prove their rather large growth claims.

Comparing the two, we have:

SEA:

MCAP = $350M
Debt = $30M
Cash = $160M
EV therefore = $220M

Production - the latest figure I can find for them is from their March preso which gave an exit rate for Dec 12 as 1700 boepd (1400 boepd avg for 2012 Q4). Let's assume some growth there and say that 1700 boepd is the March avg. They have produce an oil content of 70%, so that makes it 1200 bopd.

So SEA EV/bopd = $173K

MAD:

MCAP = $300M
Debt = $0M
Cash = $45M
EV therefore = $255M

MAD's production March qtr is 1063 bopd,

So MAD EV/bopd = $240K

I think its acknowledged here that MAD is not cheap on a production basis, but it would obviously be cheaper on a reserves basis - even if you discount the reserves by say 80%.

However SEA is not particularly cheap at $173K either. Cheap is around $100K/bopd (I can think of one example, but since I hold it, wont mention it here), not close to $200K/bopd.

Cheers, Sharks.