RE: Valuations - OER vs MMT With Ebendo 4 producing at 2,000 BOPD (855 net to OER), this should bring OER up to approximately 5,000 BOPD from Ebendo and OML 125..
MMT reports field production of 12,000 BOPD which should equal between 9,900 BOPD net (82.5% of oil before capital recovery) and 6,000 BOPD (50% of oil after capex recovered).
OER market cap $100 million, MMT $600 million.
What are we missing here?
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Mart is debt free , OER will have a debt of around ~ $150 MM when Qua Iboe is transfered to them.
Mart has ~ $60 MM in the tiller, OER ~ $28MM
Mart has no where the Capex requirement of OER to bring oil to the surface.
Baring in mind the exception of the Shell pipeline extension and it's impact on their mutual Capex to bring oil to the market.
Mart is the rig owner and operator - OER has no such material or equipment, hence must rely on OSL to do it's poking. In the same vain, OER cannot earn interest in other fields by performing poking activites - Mart can.
OER must deploy Cash to earn Interest in fields - Mart can do it by deploying rigs and assuming OPEX and getting great rewards until Capex is recovered.
OER will most likely need to come to the market to raise funds for futur Capex, there is no such requirment on the Mart side.
Lastly Mart does have an history on the TSX.V and in the market, OER has much to demonstrate .
Although Mart has a much higher share count, it trades and is very liquid. OER is held tightly by 1 Organization hence very iliquid hence no way for the market to play it up ..or down for that matter.
Just my thoughts.