Viewers - forget the report, focus is still 1300pj of 2P
They have cash in bank $27.1 with another 44.7M to come. Their cash burn rate last quarter was $7m but next 2 qrtrs will be slightly higher so they are well placed to see out their drilling and proving of reserves for 2009 without capital rasing.
Their target is 1300pj of 2P before year end !!
There is a lot of previous transaction data, but one easy one is of you refer to AGL’s announcement on 17th December [re Glouster] and look at the table on page 2 –
The range on 2P for acquisitions has been as low as $1.50 to a high of $3.93 with average around $2.
When they achieve the 1,300pj of 2P even at bottom end of @$2 it is a company worth over $2.6Bil. However ESG only have 65% of that so it’s about $1.7Bill – and it doesn’t include the many other seams they are also progressing, just this current .
Current market cap based at 45 cents / share [760Mil shares] is circra $342M ,,,, so you can see the potential upside – maybe 4 to 5 times current value or more?
Just for your personal info and my opinion only – please do not take as any advice or nod to purchase – thought you might all be interested and hopefully haven’t offended by giving you such info, in my own opinion.
ESG Price at posting:
45.0¢ Sentiment: LT Buy Disclosure: Held
