Defining the resource and cost to delineate reserves.
After a week to consider the reserve report and contingent resource report I have the following question of management.
1) given the reserve additions due to infill drilling, What is the target on a field by field basis for optimal 2p reserves. Clearly the cost to define these barrels are considerably more then the acquisition costs from the purchase. How do we look at these costs vs the cost of new acquisition oppurtunities.
2) the contingent barrels are underwhelming which points to further M and A , what are the current metrics in the operating area?
3) Given the expanded operations does that add to remediation gross liabilities , given current knowledge what is calculated terminal value? does it differ from 2p nv10.