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Longford Energy Inc V.LFD



TSXV:LFD - Post by User

Comment by good40on Dec 28, 2010 10:59am
161 Views
Post# 17898555

RE: RE: UNRISKED AMOUNT OF OIL IN PLACE

RE: RE: UNRISKED AMOUNT OF OIL IN PLACEBased on the historic value of asset sales,  the general starting point for producing reserves is around
25% of the relevant commodity price.

Undeveloped reserves is about 25% the price of producing reserves.

Note,  the difference between reserves and Prospective Resource.  There is no risk associated with
Prospective Resource,  as the definition describes undiscovered resource.  Assume a 50% risk of finding hydrocarbons,  a 50% risk that the hydrocarbons found is oil and not gas,  a 50% risk of commercial quantity and a 75% chance of being developed. Multiply them together and the chance of successful development is less than 10%.

Taxdemicco has done this before using another alias.  Anyone with an ounce of experience wouldn't apply value
this way.  It is a scam played over and over.  You don't apply a value,  using all potential production,  all at once,
without accounting for exploration costs,  appraisal expense,  development, operational and g&a costs without tax implications. All this while ignoring share dilution ,  which minimally might increase 10% per year with options granted alone.
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