Clearly this now is a story all about seeing the money. That is making sure STP is and will be able to produce and genareate cash flow on its own by getting the stuff out of the ground safe and sound.
Once there its all about computing the real value management is able to get out of the ground and having prooved they are capable in doing so also revaluate the reserves as that's then only a matter of time as to when also there are generating earnings. So fare valuation is based on - seeing is beliveing and so far still, yet close, i's still remains to be seen is what the markets are telling us.
To me at least it's now simple as that. In heinsite we have seen a couple of other valuation models as in the early days was all obout reserves, then we where all about finacing then now cash flow.
Then I fore one also beleive we may get in a real frency as STP gets up on the radar a couple of years from now as a candidate to procure...This based on the logic who will not be interested in bying in to a play with guaranteed earnings and even more guaranted and growing earnings going forward as existing reserves gradually by the company will be transformed to cash flow.