Can anyone help me understand the following measure to explain...

Can anyone help me understand the following measure to explain Amadeus worth used on page 7 in "Notice of Meeting"under heading "Multiple Analysis" .

"Production (daily BOE fo 2011) 1,150 $34.2m $29,739/BOE"

I understand how it is calculated ($34.2m (Mkt Cap less cash) divided by 1,150 BOE daily production) but I do not know why it is a useful measure and how or why you would use it.

If someone is able to explain why this multiple is used in the Oil industry as a measure and then which way would you want it to head (Is a higher value like $40,000 better than low value of $10,000)?

Thanks in advance