Using Impact/Total Case as a Conservative Base... BASE CASE - PEL 56 FARM OUT - IMPACT TO TOTAL - JAN 2024
Assumptions = 8B OIP = $4B USD Development
Total bought 10.5% WI for full carry = $420M USD + $99M USD recovery cost = $519M USD
Using 30% recovery rate - PEL 56 = 2.4B BOE @ 10.5% = 252M BOE
Therefore Total paid $2.06 USD per BOE
PEL 83 = 10B OIP
30% recovery rate and 4.9% SEI WI = 147M BOE
@ $2.06 USD per = $302,820,000 USD
$1.05 CDN per SEI share PEL 83 ONLY!!!
Now, PEL 83 looks to be less gassy and in shallower water which should result in a cheaper cost to develop and a higher premium. You can't get more comparable then this...
FYI, I use $2.50 USD