I am just learning about gas so I have to take all your word for the estimates but if the profit figure is anything like 10m per year then 10x is not out of the question so mid teens is reasonable as a target but this ascribes zero value to the offshore etc so in my opinion it could trade as high as 20c in the lead up as people begin to figure the potential there. Obviously if something happens offshore then it really could be as crazy as Rupe suggests (ie possible $1+) as there is credible reason to think the surrounding areas store significant value.
Anyway - my thinking is that 10c will easily become a floor on this stock - ascribing a $60m market cap to something making $10m a year and has elephant potential is a bit ridiculous.
To be honest the key to the SP in the next 3 weeks is what Neate does - if he is still a seller then it wont break 10c - if he was just pulling a little cash out (and not a seller anymore) then it will run into the teens pretty easily.
EPR Price at posting:
6.4¢ Sentiment: Buy Disclosure: Held
