MRP Take-Out Valuation Components During a recent conversation with MRP Mr More, in fact there are 3 valuation components to MRP that gives him alot of confidence in a good take out price in the range of .75 - $1.25, as discussed these are:
- MRP valuation based on pending Reserve Update
- $38 M in tax loss credit to be gained by the bidder from past MRP TSB expenses
- 120 % operating cost recovery to MRP in TSB operating TSB expenses to the bidder
So in fact there are 3 key components to the valuation noted above. So whatever you determine the valuation per barrel is from the Reserve Update, add in an amount per share for the $38M tax loss credit plus the 120% operating cost recovery of TSB to MRP
Also, key was the TSB is ranked as the number of marginal field and quickest to production for the bidder.