my valuation of opl

194 900 000 shares issued.

$15 million cash in bank, no debt.

$15 000 000 / 194 900 000 shares
=$0.075c cash per share

If we assume that JH has a 50BCF reserve, which a conservative estimate and current gas prices are $12/mcf and OPL has a 37.5% stake in it.

20BCF * $12/mcf (20 000 000 * 12) = $240 000 000 * 0.375 = $90 000 000
30BCF * $3/mcf (30 000 000 * 3) = $90 000 000 * 0.375 = $33 750 000

- say they get 20BCF out at current prices of $12/mcf and the remaining 30BCF is given a NPV of $3/mcf.

$90 000 000 + $33 750 00 = $123 750 000 revenue.

Profit margins of 10% on the revenue = $12 375 000

At current market capitalisation of $124 736 000, it gives it a PE multiple of 10.

So the SE Lost Hills Shallow Gas project fully covers the current share price of OPL and it has another 4 projects, the SE Lost Hills Oil deeps, Forbes, Turk Anticline and Aera Projects which are all potentially worth more than the Shallow Gas play. So it's a fair assumtion that out of the remaining projects, over the next couple of years they will be able to maintain a PE multiple of 10 with the current market capitalisation and the market capitalisation should expand to keep a PE multiple of 10.

We'll see a few more wells drilled by the year end if all goes to plan, so I think OPL represent fantastic value at the moment while oil & gas prices hold up.