nxs vs awe

What is wrong with SP of NXS when compared to AWE?

NXS has:
- 4mmboe of annualized production (when LT is at 100%)
- 1 medium scale development project ready
- 1 appraisal project
- a number of exploration targets.
- net debt of about A$265m
- 2P reserves of 122mmboe
- Market Cap of A$306m

AWE has:
- ~7mboe of prod
- Near-field extensions although only 1/2 firmed-up.
- No development projects on the go.
- About to blow $175m of exploration.
- Net cash of about A$315m
- 2P reserves of 69mmboe
- Market Cap of A$1360m

OK, so deduct AWE cash from MCap of AWE = A$1045m. All things being equal, this value should be relative to reserves. (Some may have another method but I will stick with this.) Therefore, AWE is being valued at A$15.14/bbl.

NXS has MCap of A$561 when you add-in debt. Therefore, NXS is being valued at A$4.60/bbl of reserves. If we took AWE reserves value/bbl of A$15.14 against NXS, we would have a MCap of A$1582m (as reduced for debt of A$265). Apply a discount factor of 25% for poor management form, low market sentiment and minimal financial capability and we should have an NXS MCap of A$1186m which would equal an SP of about $1.26/share...


Question is AWE running the numbers on NXS at the moment?

Surely they would pay at least $0.60 share and take them out...who would sell at this price?