eureka takeover values mad at $2.22

"Aurora Oil and Gas has launched an unconditional, on-market cash takeover for fellow Texas-focused shale gas explorer Eureka Energy, valuing the company at $107 million."

My calculations:

Eureka has 3.1 million barrels of 1P oil equivalent, around half of which is liquid. The $107m offer (minus $5.2m of EKA cash in hand) is thus $50.9m for the oil, or $16.40 per 1P BBOE.

MAD has 50.6 million barrels of 1P oil, so on this valuation alone, the company could be said to be worth $831 million, or ~ $2.22 per share.

Errors in the above:
- shale oil is not as sexy as MAD's oil oil, so this valuation is low
- incorrectly assumes boe value of oil and gas is similar (i.e.: half the money is for their oil, half for the gas), so this valuation is low
- doesn't take into account acreage or production