valuation on 3p reserves

In my post of 2/3/2010 i was ridiculed in some quarters by using 3p reserves in my "back of postage stamp" valuation.

That post is as follows:

This was my post 21/12/09

Postage stamp valuation based on 2,750,000,000 gj's (3P reserve target - asx announcement 17/12) at .41 cents (very low but conservative - based on some previous buyouts) per gj.

1.gj's at .41cents equals $1,127,500,000
2.shares currently on issue 286M (approx)accounting for SPP
3.estimated price per share $3.90 (approx)

Recon its a fair/good medium term/long term buy and possibly a takeout target.

I agree that market has come off in this sector for the time being and that valuations are now possibly being done on contracts and not reserves - however directors are buying so this gives some confidence.

I note that the arrow valuation (article in The Australian 9/3/2010) was assessed on a 3p valuation of 55cent a GJ - which in my opinion is somewhat below what the market should be paying.