atrush
I think its a little early in the game to be placing valuation on this company using a P/E ratio or valuation multiple.
I'd expect this company will be pouring any earnings (if any) back into exploration. The value here is in establishing reserves. They are doing a good job of that.
Regarding the concern with respect to co-mingling production since there were 10 DST tests performed, I've had another look at the data and I dont think it will be a problem at all. The 6393 BOPD tested flow rate was entirely from three Jurassic horizons, and "RFT pressure indicates the Jurassic is a single column of 20-24 API oil". No problem there.
The Cretaceous section has not been factored in yet, maybe it has different pressure, maybe it can or maybe it cant be co-mingled.
The pre-drill estimate for Shamaran's gross share for Atrush discovery is 161 million barrels. The drill results exceeded expectations. What sort of value did they just add to the company? At $5 per barrel (anyone have a better number?...) thats $805 million. I welcome any corrections on my calculations and assumptions, Im not in M&A or marketing.
The Pulkhana discovery, currently in the appraisal phase, has a gross share to Shamaran of 99.8 million barrels. At $5 per barrel that is $499 million.
Both discoveries combined, using my back of the envelope calculations, provide $1.3 billion in value or $2.07 per share fully diluted, without taking into account that SNM also has an interest in two other very prospective blocks to explore.