TSXV:ART.H - Post by User
Comment by
Baxter4on May 04, 2010 6:48pm
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Post# 17062664
RE: RE: RE: RE: RE: Seven month wait from spud
RE: RE: RE: RE: RE: Seven month wait from spudRead the text again,I am talking about undeveloped reserves which will be appraised as P2 when/if the Vast well makes it's discovery. Current price of Vast is risked so all valuations must assume commercial hydrocarbons are found. I'll highlight the important stuff in the article.
You keep confusing the value of North American reserves compared to global prices. P1 reserves in North America are worth less than P2 reserves globally because economy of scale. Middle East wells average 10,000 bbl/d while in the US they average 8 bbl/d. Which is cheaper to develop and produce?
Oil and gas valuations globally, based on an evaluation of the $100 million plus deal market and prices paid per 2P entitlement reserves, ended 2009 at the $14.40 per BOE level, up 40% from a trough number of $10.20 per BOE seen in Q1 2009 but down from the $20.90 per BOE peak seen in Q1 2008. In the U.S., valuations for 1P oil reserves ended the year at about $14.10 per barrel, down 25% from the 2008 peak. For 1P gas reserves, values ended 2009 at about $1.80 per Mcf, down 40% from the 2008 peak
Did you, GoneFishin45 and Godfrogger all enjoy your extended long weekend together? Does the GF club have a secret handshake?