Walywill - With all due respect, Graham Analytics has lost all credibility in my view.

Look what they said just a short year ago and how incredibly wrong that analysis has been proven since then. Us shareholders are living proof of that! Up until today's company update, I had given  the company the benefit of the doubt but now all bets are off. The actual survivability of a company down almost 90% in 12 months comes into question in my mind at least. Extremely disappointing is the understatement.

From Graham Analytics website:
"As for the Company's forecasted 2012 exit rate of 3,000 BOE, I'm asked if that includes gas, hence lowering the netbacks calculation. I don't know what it includes, and quite frankly, I see it as so low a figure in the face of what I'm anticipating that it's almost irrelevant. Let's just throw the 3,000 barrel figure in the hopper as straight oil for the sake of running the numbers. This would show a cash flow (from netbacks at the current level of $90/barrel) of just under $100 million. Using a conservative 6x cash flow valuation, this would yield a share price of $5.53. Personally, I see half of that coming from the first two wells, alone.

So… in my view, current share price ($2.96) reflects no meaningful value beyond the first two holes. Nothing from the planned eight wells in Taranaki and nothing for the 1.8 million acres in the East Coast Basin.

It's all good from here.

Under promise… over deliver.

Best, Kevin Graham"



"Under promise..over deliver"

Boy, that statement couldnt have been further from the truth, could it. More like, promise the moon and deliver..............300 BOE instead of 3,000.