At the current share prices of RKH (279p), BLVN (322p), and XEL (372p) we have the following valuations - see table below (based on a conservative 5 dollar per barrel model). Bowleven looks very undervalued given its finds are valued at over £7 a share, even with the political risks of working in Africa. RKH and XEL assume no exploration upside or resources upgrades, which is unlikely and still are valued at £2.05 and £3.91, excluding cash. It is worth pointing out that Rockhopper has around £200 million in cash (which will fund at least 8 more appraisal wells and seismics) and Xcite Energy has in the region of £40 million (though most of this will be spent on the Rowan Norway rig). Most takeovers are at least the 8-10 dollar per barrel range for proven reserves following a full CPR (Competent persons report).
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