real valuation, page-9

no mick, you are way off

Firstly, would you swap $100mil of cash, for $100mil of reserves in the ground?

seriously? I wouldnt

would you pay $100mil, to, only get, possibly $100mil back over 10 - 20 years?

thats a raw deal isnt it? who would do that? you would be shafting yourself.

but, if you could buy $100mil of reserves for $50mil which will take you 10 or more years to get back, then it becomes of interest. because your spending $50mil to make $50mil

A take over offer must have some value to the buyer.

60% is very best case considering BUR has no inferstructure or equipment or anything else to tie into the package.

their reserves are very tiny in the world of gas exploration.

so 13c is the absolute most, total premium price.

but thats when valuing at a resource to take over.

BUR is a company, which is broke, ie its cash is the same as its debts and running costs till end of year.

BUR has no revenue, the little bit on the sales pipe line now is probably still 3 months away from hitting the bank

and when its fraced which could be a month or more, you then still got to wait 3 months. and that money aint going to get you drilling instantly, you gonna have to wait another 4 months to build the cash to do a drill, which is middle of next year.

the JV wont want to wait that long! BUR has to cap raise.

not oversold at all.