Arcan Resources Ltd ARNBF

RE: RE: Stock Price showing Resilience & Strength

[good40]

The value is in reserves assets,  valuation based on a per flowing barrel is so widely variable that you can't compare.  Reservoir characteristics are the factor used for that nlr2... a decline factor of 44% for less than half a year makes it less valuable than a reservoir that has a minimal decline factor. 

 

Putting that aside... you used todays'  market cap with next years'  potential average rate,  without adding the capital expense required to sustain the 6000k bopd.  They increased last years'  average rate by only 1200 bopd while spending $225 million.  If you expect 6000k bopd as the 2012 average,  then you should expect another $225 million liability added to the $500 million market cap.  $725mm/6000k or over $120k per flowing barrel.