I beleive their exit revenue for 2102 were around 40 mil., according to analysts 2013 anticipated revenue will be 174-205 mil., that is 4-5 X more than current.
We all know that they are currentlly undervalued, but let's assume valuation is right on target, based on revenue for this year sp should be at the end of year around $1.50, production rate is growing faster than managment said, which is positive factor.
Their plan for last year was 3000 bopd, yet production reached well over 4000 bopd.
With LM7 coming fully online soon, target for this year will be reached sooner rather than latter.
With so many wells to be drilled, and managment plan to expand, 3-4 dol. is conservative.
With success of LM7, the rest of LM-8 to 12 look very promising.
Of course there is always risk of another dry well, but that's part of package.
Just another opinion, DYODD!