ARHT Media Inc V.ART.H

RE: VST NAV formula

[Baxter4]

I made up a table showing what the nav is with different reserves and prices. Since table don't post well, I'll give the numbers in a different way.

First the assumptions.

1.  I used a conservative 16% recovery to match the potential reserves report. Higher recovery means higher NAV proportionatley.

2. I used no dilution to the current 292MM shares as any dilution funds would be used to transfer P2 reserves to more valuble P1 reserves. Any new shares issued will enhance the existing shares.

3. Reserves used were the P10, P50, P90, Pmean and 240MMbbl to humour g40.

4. Values used were $5.25/bbl from 2008 P2 aquisition values, $14.40/bbl per 2009 P2 aquisition values, $30/bbl to reflect current Cardium P2 aquisiton prices in Alberta (which had P3 potential built in) and $4 again to humour g40. All these aquisition values are based on BOE, which includes dicounted natural gas portions.


P90 Reserves=269MMbbl

$5.25 = $1.79
$14.40 = $4.91
$30 = $10.23
$4 = $1.36

P50 Reserves=450MMbbl

$5.25 = $2.99
$14.40 = $8.21
$30 = $17.11
$4 = $2.28

P10 Reserves=849MMbbl

$5.25 = $5.65
$14.40 = $4.38
$30 = $15.49
$4 = $4.30

Pmean Reserves=526MMbbl

$5.25 = $3.50
$14.40 = $9.60
$30 = $20.00
$4 = $2.67

Pg40 Reserves=240MMbbl

$5.25 = $1.60
$14.40 = $4.38
$30 = $9.12
$4 = 1.22

All these NAV's assume we strike oil. Again, these are based on a conservative 16% recovery which could ultimatly
double. I've highlighted what I believe the NAV will be at $9.60/share.