Blade2008If you are anywhere close to being correct with your...

Blade2008

If you are anywhere close to being correct with your assumptions - knowing that the published average P/E Ratio for the oil/gas industry is 25.4 – this in turn means that the if the entire net income from production at Mahalo was distributed to shareholders – and I know this is a ‘big leap’ to take but purely for illustrative purposes – this would give an inferred value to our 40% of Mahalo once production is up and running of 25.4 x $23.36million = $593.34million

The $23.6million figure came from you calcs taking the 40 Terra-joules/Day production figure equalling $116.8million – deducting 50% production costs – then attributing 40% to us.

We could of course be bought out of our Mahalo interest before production – plus not all the net income from Mahalo will be paid out as a dividend – BUT - from where I’m sitting with the company having a market cap of just $192.8million – there’s one heck of a potential upside on the value of Mahalo alone should production be running at just 40 Terrajoules/Day when the expected initial production rate is expected to be 40 to 60 Terra-joules/Day and presumably rising from there with first gas envisaged in 15 to 18 months.

All looking good to me…