Well, there is certainly enough potential for a market cap in the billions, it just depends how the exploration goes. There's a few companies out there on AIM pushing 700-800m pound market caps with just 100-150mmbls discovered. True these are when they start producing- but that's a near term possibility in Georgia and Trinidad anyway, and chances are we could find more oil than 150mmbls across all projects. Premier Oil (AIM:PMO) has 350mmbls and a market cap of 2.3 billion pounds. And with a large slice/all of Trinidad, plus Georgia and Puntland, we should be able to hit reserves comparable or greater than those. Yes Premier are producing but we could get to that stage with Georgia/Trinidad quickly enough.
Remember in most drills, the targets given by the consultants are very conservative. Obviously value isn't just dependent on reserves (i.e. GKP have 4.9 billion barrels and only a market cap of a 1bn pounds), but Trinidad is a safe, known producing area, and Georgia isn't that bad compared to other areas where drilling takes place (Nigeria, Kenya etc).
With some success there's no reason we couldn't be up there as a mid tier producer.
RRS Price at posting:
33.5¢ Sentiment: Buy Disclosure: Held
