GREY:LSTMF - Post by User
Comment by
Wellsitteron May 03, 2010 12:30pm
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Post# 17056486
RE: RE: RE: deep pockets
RE: RE: RE: deep pocketsIs the billion dollar price tag justified? As you well know, it depends entirely on your perspective. If you believe that the price of oil will do nothing but rise due to war, demand pressures, etc... then a billion dollars for a big piece of a big pie (7 - 10 billion bbls OOIP) is easily justified. Looking back from 2020 this will be an impressive feat or a laughable blunder. Location is everything (the old mantra goes) but perspective and outlook are huge too.
When companies are paying $800mm for 25,000 bbls/day of bitumen production with net-backs at a fraction of the Cardium production, I suppose $800mm for 25k boe/day of 32 ° oil must look pretty reasonable.