ARHT Media Inc V.ART.H

RE: RE: RE: RE: RE: RE: RE: RE: RE: Pretty expensi

[Baxter4]

So let's look at the number of lies you had in your last post.


You used the maximum number of potential petroleum in place figure at 3 billion. I used the number you used, the actual maximum potential petroleum in place is 4.896 billion bbls, which was further down in the same post but you chose to ignore it. You used the 2009 value of proved and producing oil reserves of $14.40/bbl. I used the 2009 value of P2 reserves of $14.40.BOE, which is proved and producing PLUS probable reserves. You seem to want to ignore the probable part of the equation.

You used the current outstanding share count. Correct, but I also explained in my last post that if you include dilution for future capital expense you also have to credit more of the reserves as P1, at a higher value.

You have accounted for no capital expense,  no dilution and used an exaggerated potential resource. It is as plain as the nose on your face and yet,  you still have cheer leaders with pom poms.  Dilution, capital expense and higher oil value go hand in hand. The potential reserves I used was the number you used of 183 million bbls. Per the prospective resource report, adjusted for Vasts 37% interest, the reange of reserves is 99.5 million bbls to 314 million bbls. So how is your 183 million bbls exaggerated?

You have multiple handles You seem to think I have multiple handles, figure out the truth,  you promote exaggerated potential for short term gain I try to use realistic potential, and I am here for long term gain.  This one is expensive in that it trades as if a huge discovery has been made. You keep saying this but the numbers don't support what you say.

Undeveloped 2P oil in the ground is worth less than $4/bbl... don't ever forget it  Just because you keep saying this does not make it true. Per the 2009 Mergers and Aquisition report, undeveloped 2P oil plus developed 1P oil was worth $14.40/BOE. Dilling this well will generate some P1 (proven) reserves, some P2 (probable) reserves and a lot of P3 (possible) reserves. The standard when figuring out M&A pricing is just to consider the P1 and P2 reserves. P3 reserves are still considered but not included in the calculations. This is why recent buyouts in the Pembina Cardium field went for over $30 per P2 reserves as value was placed on the P3 reserves. It is why China spent over $16/bbl for P2 Middle East reserves.

Your arguements cannot win over the truth, so why do you keep trying. What is your reason for posting?