RE: Drilling in July - Margin500HHdoc,
When doind my analysis, I look at worst case scenario. In this case, I ignored the 330 million contingent barrels & potential 1 Billion BOE anounced by LFD and decided to use the more conservative 30 million barrels recoverables reported by INOC.
40% of 30 million barrels implies 12 milion barrels which implies an insitu value of around $1 billion for LFD. EVen if we discount the CPAEX & OPEX costs of development and tax, it stil would result in a NAV greater than $200 million for LFD (at least more than 50 cents a share). So I disagree that it would be uneconomic. Again, this is assuming the worst case scenario! If we use recent LFD sesimic data which would be more reliable than the INOC data, then the values above would increase by multiples of more than 5.