Good comments from all. I didn't see the upgraded targets but in my book. they are all under what should be the true value of this share price going forward.

I have been looking at value forcasting models for the oil patch and the most reliable seems to be the cash flow models. We are a year away from having any cash flow, but i think that much can be said for looking into the crystal ball at this point.

If we have a flow rate of 2900 bpd from a horizontal well of 500-550 meters, the stready rate could be much higher and with the data collected, I would think that they can increase that flow rate. The better news is that they will be drilling the well pairs to 800m and that will also increase the recoverable oil. I am guessing at a rate of 4000 bpd is not out of the ballpark.

Set up 6 well pairs at 4000 a day, we are looking at 24,000 a day at some point in 2012.

Thats some serious cash flow.

I am unsure as to what the multiple to cash flow for an oil company in the UK could be expected. But i am going to hazzard a guess and say this company could be valued at north of 25.00 one day, but am i going to hang in that long? Probably not. I will be out at 24.00 for sure :)

Good Hunting boys.

Andy