Realistic Valuation- Assuming only 100 million reserve - very very conservative
- 40% of LFD cut is = 40 million barrels
- Assume net profit of only $20 per barrel based on $70 average oil price & payment of 40% royalty, tax and other general admin fees & operating expenses = Net Asset Value = $800 million (assumes PSC in place)
Assuming further discount by 10% for unforseen circumstances = NAV = $720 million
Assumming fully diluted shares of 250 million: NAV per share will be $2.88 (potential 700% return from current share price)
Additional resources from the prospective resources & gas/condensate would be extra!!