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ARPETROL LTD V.RPT

"ArPetrol Ltd is engaged in the exploration for and development and production of oil & natural gas, and also provides natural gas processing services for third parties in Argentina."


TSXV:RPT - Post by User

Post by TheRock07on Apr 19, 2014 9:14am
342 Views
Post# 22468862

2P Reserves net valuation

2P Reserves net valuationNPV10 of the 2P reserves is $115 million US.

Remove $10 million in capital costs to complete well #1 and remove $40 million to drill the next 2 wells.
Net value of the 2P reserves, discounted 10 %, then becomes $65 million US.

Additional value would accrue from the 2 million boe of Inferred ....lets say just $5 million.

So, $70 million discounted at 10 %.
This is what they should receive in any sale.

I divide by 2 to get $35 million US as a low ball conservative value.

The gas processing plant is worth at least that amount, so the very conservative asset value is about $70 million US or about 12 US cents per share
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