The average TSX Oil and Gas industry P/E is 8.5
(Source: https://simplywall.st/markets/ca/energy/oil-gas).
$VUX ($29 cents stock price) had 6 cents earnings in FY22. That would be $6 cents * 8.5 = 51 cents per share.
However, there was also an impairment which makes earnings lower than 'reality'. This is due to lower oil prices December 2022 vs December 2021 (valued at $80 now).
Without impairment it is 8 cents earnings FY22. That would be $8 cents * 8.5 = 68 cents per share. (more than double current market cap!)
The TSX 8.5 P/E is for mid-cap but with the clean balance sheet and a cash position I believe this P/E is fair. Not taking into account the new assets they bought this January.
Operational netback:
Looks to me low price for #VUX when I see that Q4 was 2 cents operational netback per share with oil at $80. The impairment of 2022 is in Q4. G&A is less than 1mln annually. Depreciation subtracted or not is up to the investor themselves, but it is subtracted from the annual earnings (to make it 6 cents in 2022).
Growth potential:
Interesting, they bought new assets in Q1 2023. Quote from MDA: "The Company also acquired another larger Cardium asset in Pembina area in January 2023 in the West Central Alberta property area. The Company may choose approximately up to 10 well sites to drill in 2023 after completing additional reservoir studies, engineering and facility cost estimations." (This is in Q1 of the new year)
Chances for a press release on the wire end of May:
This year is the FIRST time to have 'news on the wire'. First with Jeff Standen joining the board of directors. Second with financials on the wire. I contacted the company suggesting to put next 'news on the wire' with a press release showing the actual "Highlights" to investors, like the new assets. Q1 financials will be end of May. Exciting times!