• Say base production in 2013 is 22500 bbls per day (it may likely be more but very unlikely less)
  • Say Brent comes off to average $100 average in 2014
  • The netback would be ~$39
  • The 2014 cash flow per share will be $1.26
  • So at a CFPS multiple of 3.5 we have a share price of $4.41
  • And at a CFPS multiple of 4.0 we have a share price of $5.04

If Brent averages $105 then we have share prices of $4.95 and $5.70. This is without any other good news announcements.....pretty good risk reward really!