That is brave, but not necessarily wrong
After a little reading it seems like they are considered to be undervalued for their known reserves (and have been considered this for a while), but the share price is depressed for what reasons?
Security got to be a big one.
Ongong "legal issues". I know nothing about these, but saw them mentioned in a couple of places including the half-year report. Possibly not a big deal?
The law ratification that you refer to: is it possible that it won't be ratified?
It looked like people bought into them about a year ago on hopes that they would be taken over... That may be a long term plan for the management. They certainly seem to be paying the staff a lot of shares.
They haven't run an operating profit since 2006 (and I don't understand why they did in that year). They rely in cash reserves to fund operations and don't have that much of it. Corporate and UK office expenses are massive. They are trying to sell up their Algerian blocks to BG (not currently producing by the looks of things).
Kurdistan income seems to be be greatest @ ~1.8M in H12011, but even there they made an operating loss. They talk about increasing production but a short term aim is to stabilise at 5000 bopd before increasing. It looks like they can't bring production online fast enough to get income up. Need to build a dedicated pipeline to allow increased production: what is the cost/timescale of this? I also noticed that operating costs increased from ~$9 per barrel in 2010 to ~$24 per barrel in H12011. Seems high, but may be a good reason for this.
They make a nice point about spending $64M in H12011 on exploration and weigh that against the value of their assets increasing by considerable more than this... good business, but it looks like they need to find some buyers for their licences to realise this value before they run out of cash. Can they? Ultimately it looks like takeover by a company who can afford a longer time frame is the inevitable end, but I have no idea how far away that is, or if they can survive that long. Good money to be made if you get it right!