reserve calculation, page-12

I appreciate your comments on hype Jaks but I don't see the actual sale transactions as suspect.

What might be viewed as suspect is whether or not those asset values can be achieved other than through a sale or T/O process.

Under a sale or T/O process it is normal for a rigorous due diligence to occur resulting in both buyer and selling at least attempting to find fair value for the asset. It is the only time the value of the asset is subject to such determination. Left to the market the market capital value usually lags the sale value markedly these days (less so pre GFC).

Yes the chairman was painting a promotional picture but in all likelihood these smaller companies do get taken over, in which case, the GJ metric becomes highly relevant.

I would add to that, many of the director/management team in an hydrocarbon IPO enjoy the "junior game" of turning nothing into something. They are not interested in the boring day to day running of a large venture, prefering to start again following a successful start up (proven ,developed discovery). Allan Stein at Calima is a good example of this (ex Fusion and more laterly Ophir).

My thoughts are that assuming commercial success at Tamarama, some further development to add value will more than likely occur and then the business will be sold hopefully at decent industry metrics.