GedW / Chan / Steelwatch5 May 2009 13:41
Just posted on the EO. board some analysis... any thoughts?? I did the same analysis for SE. and came up with c. 33 million income from Breagh as a minimum. This would put SE. at more than 100m value and a sp at 36.8p with no premium.. stupid pricing at 15p region, less than 50% of value. I view the asset quality as very high with SE. and the more I look at them the more I like the potential for real long term value though Crawford scares me a bit... HOC found that one hard and I think I recall another operator having a go. Having said that the drilling technology has moved on so far it may be a sleeping giant. W don should yeild a cash-flow of about 50 million dollars a year to SE., if they can build a portfolio of assets of this type their growth potential looks excellent. Short term, I cant see lower than 30p being a fair value but I can see 3.5 times that three years down the road... its a shame I dont own more. Best of luck to all the faithful ... DYOR/IMHO.