TSXV:ART.H - Post by User
Comment by
Baxter4on Jan 31, 2010 9:40pm
293 Views
Post# 16738032
RE: RE: RE: RE: RE: RE: RE: RE: RE: RE: naysayers
RE: RE: RE: RE: RE: RE: RE: RE: RE: RE: naysayersLet's pretend and use your numbers (tax comes last)
If royalties are 10%, then $70 oil is now $63 If it costs $10 per bbl
to develop and $10 per bbl to lift, it leaves $43 per bbl. If they pay tax at a 50% rate, then it leaves $21.50 per barrel AFTER EXPENSES AND TAXES.
Not bad. Let's see, 400,000,000 potential reserves times $21.50 times 37% is just over $30 billion, divide by 287,000,000 is $11.00 per share. Add to that the risk factor, which for arguments sake is 10% and the present value is $1.10.
You've convinced me, I'll buy more tomorrow.