CabelIf u look at New zealand energy corp u will see that the price of NG in NZ in 2011 is at NZ $7 (US $5.5)
so u better of taking 5$/mcf (not far from the price of NG in US)
regarding oil price u take 90$ a barrel. If u look at TAG Q1 u will see that they sold it at 86$ a barrel. In Q2 oil price is around 20% lower than in Q1 so u should take around 70$ per barrel of oil
this will lower considerably the profitability of the oil and gas project especially NG project wich have a break even at 4 to 5$/mcf in US (if u take into account last project developed)
If u take into account all above u will realize that TAG should be value around 5 to 6$ per share so around the current value.
U have to take also into account that NG is worthless but oil is a lot much more profitable. This is what can take off TAG into the future.
Best
Julien