Hi just had a read of the report.While the $1.23ps valuation is...

Hi just had a read of the report.

While the $1.23ps valuation is nothing to write home about the breakdown is!!! @$0.97ps just for Blue Ridge reserves, the upside is significant. Current reserves are only calculated on the 1600 acres and does not include several potential discoveries that have been made or the potential for deeper reserves, add to that the potential upside from the recent doubling of acreage and the valuation should end up being considerably higher. A token valuation has been attributed to Boling and Nash, due to MADs low risk approach of targeting proven oilfields the potential of success at these 2 fields is very high.

This quote from the recent interview has me wondering, just how big are the potential numbers???
"We hold significant untested reservoirs and targets in our existing fields - where if we are right the numbers jump exponentially." I suspect we will find out when the reserves report is released, likley in may..

RBS have forcast NPAT of $53.7mil FY14 @ approx 4000bopd @$92bo significantly below what MAD would currently be recieving..

"We see the benefit of JVs to accelerate exploration and
appraisal, once the seismic studies are complete and the acreage is derisked enough to negotiate
strong deals."

It is all pointing to a significantly higher valuation once the new reserves are released. The larger the shareprice the closer to valuation the stock is likely to trade as the institutions move in. We may even see a premium based on the success of management in deliver new and successful projects.
Cheers