mad technicals vs fundamentals, page-14

Production valuation based on yesterday's price:

$210M mcap

$50M cash

$160M EV

1250 bopd production gross

1125 bopd production net of GS WI

EV/bopd = $142K, i.e. on today's production

EV/bopd = $80K, i.e. if production reached 2000 bopd by year end

On current production, price is fair/reasonable value. On (6 months) forward looking production, its cheap.

Anyone suggesting the SP will get to 20c is suggesting on current production the EV/bopd would be:

Mcap = $105M less $50M cash = $55M EV / 1250 bopd = $50K/bopd. I dont think so. Either production would have to plummet, or cash would have to evaporate, or both, for that to happen. The doomsayers say it probably will, I disagree.

Cheers, Sharks.