RE:RE:RE:Fact Sheetok, can't use the phrase 3X earnings when you are using gross revs. Typical way to value energy companies is a multiple of cashflow.
Mart is a company I hold that had about 5,000bpd in production for Q2. That equated to $43 million in gross revs and 31 million in cashflow and 19 million in net income so "costs" are more than trivial.
Royalties or other rev sharing with the local government can be substantial in Nigeria or Tunisia. They get greedy once they see the income statements and "renegotiate" after the well is producing.
If NFK could get 120million per year in cashflow, which is possible at 5,000bpd, they could be valued at 3X cashflow or 360million or 3.60/share so your number is not that far off, even though we disagree on terminology.
If earnings for NFK came out like Mart, you would have eps of .19 for the year and to get to 3.60, you would have to have a p/e ratio of 19, which is pretty high for a foreign oil producer with a single production well.
But bottom line, the upside here is significant if they hit a 10,000bpd well. But that's a big well and we don't know if we have 100bpd or 10,000bpd yet. Crossing my fingers and toes.