valuation, page-2

My valuations currently put this on a reserves worth of 520million dollars, based purely on the exact 1p and 2p prices paid for Linc energy.

However, I think the market is factoring a lot in for nash dome reserves to continue this steep rise, so it may actually fall on announcement, unless its up to market expectation (i'd say hitting the 100mil BO would be on expectation).

Its hard to value this company as a lot of its worth is assets and it really needs to kickstart production increases to increase revenue. It has started doing major ramping of its production (starting this month) but it needs to keep buying rigs at a fast rate (of about 2 per month) to ensure the PE ratio doesnt go too high.

Currently, our PE is 180 (as at 06/11). This year, we have seen massive increases in revenue (from 11mil for FY2011) to 10.5mil for first 6 months of FY2012.

If we can get this revenue up to 25-30mil for FY2012 and 70-100mil for FY-2013, we could be a billion dollar company.

but its going to take some good management and business plan to achieve, which I think we have.