LIO really is quite remarkable. It has 14cps in cash and is making $2.4m per annum (4cps).
LIO knocked back an offer for 7cps for the producing asset when oil was $60 a barrel and it must now be worth at least twice that.
And now there's another 60mmboe discovery with more drilling due.
Whilst its share is only 2.5%, at $30 per barrel, 30% recoverable, this discovery is worth another 23cps on a conservative basis.
That puts LIO at worth somewhere north of 50c. No blue sky, just on existing assets.
With the stock at around 16c and the options (35c Aug 2011) around 4.5c, that puts LIO at about one third of its NTA.
Does anyone know of a more undervalued oiler on the ASX?
Good luck....
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