a simple formula for valuation, used for oil and gas companies:

fair value share price = (production boed * price per flowing barel) / number of shares

.

based on lets say 65000 per flowing boe on 71mil fully diluted number of shares, ARW share price would be

0.93 on 1020 boed production

1.10 on 1200boed production

1.37 on 1500boed production

.

on a lower 45000 per flowing boe on 71mil fully diluted number of shares, ARW share price would be

0.65 on 1020 boed production

0.76 on 1200boed production

0.95 on 1500boed production

.

in case of an aquisition, the price per flowing boe will be likely above 85000 because of 90% oil, so on 85000 per flowing boe on 71mil fully diluted number of shares, ARW share price would be

1.22 on 1020 boed production

1.44 on 1200boed production

1.80 on 1500boed production

.

I am using a conservative 1500boed production, but as I pointed out in other posts it is very possible Aroway will realize a 2000boed production this year based on West Hazel, Little Bow, Kirpatrick and Worsley new drilling and updates.