Thats because he flipped from a cash-flow analysis to a value-in-ground analysis.
The cash flow analysis showed the company at a PE somewhere south of three.
The in-ground analysis showed to justify a AUD60m valuation, you had to assume found proved oil to be valued at AUD20 in the ground, with cash and exploration country worth nothing.
At current margins for oiol this is clearly an unreasonably low number to use.
Ian Whitchurch
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