Preliminary Valuation of ExploreCo: Based on cash and a mark-to-market
valuation of the Alvopetro deal we value ExploreCo around $1.80/share.
The $100m cash position moves to $90m on completion of the acquisition
of remaining stake in Alvopetro, effectively $1.06/share. The combined
acquisition cost of Alvopetro is $47m, around a $0.55/share mark-tomarket
valuation. The conventional producing assets are relatively minor
at ~50bbl/d and <1mmbbls (post acquisition) that we provisionally value
at $15m or $0.18/share. However, given the early-stage nature of the
unconventional acreage, extensive and sustained investment will be
required to unlock the full potential.