Ann: Conventional Portfolio Update, page-46

Share price is the present value of expected future cash flows.

Serena, in the context of an O&G explorer, this statement of yours is wrong and ill-informed.  Simply put, pre-dscovery, there is limited fundamental value to underpin the market cap which is essentially the speculative value of the venture(s).  Easily affected by market sentiment, up or down, and by layperson interpretation of speculative prospects. You will note that the net tangible assets per share is a fraction of the share price.

If, however, we find a sizeable discovery and this is independently rated in the form of contingent resources and better (ie reserves), then we have tangible valuation levers that the market will employ.  Based on POO projections and based on estimated costs of development and production, and discounted significantly due to long time-frames and associated uncertainties...but still essentially an asset valuation.

And if (albeit unlikely) the company starts producing on an ongoing basis, then we will be in a position for DCF valuation that you speak of.  I'm not holding my breath for that.  This is not investment advice.  DYOR.

Perhaps you thought we were a producer?