valuation

I've gone over the Reserves Update and the 2012 Prelims and come up with the following valuations for LHD. They range from 9.1p(14c)to 13.9p (21.4c) per share, the current share price is 6.4p (10c).

What turns out to be the final valuation is to a large extent dependent on how many potential bidders there are. The article posted the other day suggests there are up to five possible buyers, six if Ithaca is included (link at foot of page).

From the Reserves Update using the proved, probable, possible percentages

1P 90% of 1.79mb = 1.611mb

2P 50% of 2.61mb = 1.305mb

3P 10% of 4.47mb = 0.447mb

Probable Reserves= 3.363mb


What US$ price per barrel? (Net after tax)

At US$15 x 3.363m = $50.45m x say .62p = £31.28m divided by 300m shares = 10.45p (16.09c) per share

At US$20 x 3.363m = $67.26m x say .62p = £41.70m divided by 300m shares = 13.90p (21.4p) per share


From the 2012 Prelims which have accounted for legal settlements and tax deductions

Note: AUS$

Total assets AUS$77m less total liabilities $34m = $43m x say .64p = £27.52m divided by 300m shares = 9.17p (14c) per share

The 9.17p valuation includes the legal settlement of just under $9 and final payment for the Drilling Fluids business but no income or outgoings since 30 June.

Comments/corrections appreciated
Automated.