I have a naive question: In August, 2010, Miller announced that the present value of its Alska reserves alone was increased 46% to $1.2 billion. My question is how can a company with a present value of $1.2 billion for merely one of its properties have a market cap of only $249 million? I have no other comparisons of comparable companies and no knowledge of how these types of calculations are used to value cmpanies, but, on the surface, this just doesn't seem right.... Why wouldn't there be extraordinary interest by other companies to acquire MILL?
It has to be produced along the lines of the assumptions made for the reserve estimated and all things can happen between now and then like a change in the oil price, or unforseen production problems. Plus there are costs of production also. That number you saw is usually just a top line number.