valuation

Valuation was done after watching the Excellence in Oil and Gas Presentation by the Managing Director Mr Peter Henderson BRR Media. Here's the link;

http://www.brrmedia.com/event/preview/9sgb5mfont/95559

In it he states;

Going on the typical transaction values for coal seam gas deals over the past 10 years, the average price paid per gigajoule for 3P reserves was $0.51

Santos paid $0.51 for Eastern Star Gas
Arrow paid $0.16 for Bow Energy
LNG offered Westside $0.21

Noted :- there is quite a large variance

So my calculations are on minimum of $0.16 & average of $0.51

a)1 gigajoule = $0.16/ 1 petajoule = $160,000
times 2542 of 3P = $406,720'000
divided by number of shares 338,600'000 = $1.20

b)1 gigajoule = $0.51/ 1 petajoule = $510,000
times 2542 of 3P = $1,296,420'000
divided by number of shares 338,600'000 = $3.83

This gives Metgasco a minimum value of $1.20
and an average value of $3.83 according to his valuation method.