RE: message to self So before 3D seismic HRT valued the blocks at $750M.
After 3D seismic GALP is ready to spend $200M (rough estimate) for a 14% share.
This would value the blocks at $1425M roughly double after 3Dseismic.
The market values 70% of EOG's blocks at $22M before seismic.
EOG's blocks are superior to HRT's since they have more potential resources
and are more likely to be oil oriented. The 3D seismic is still to be done.
Obviously there is a very large disconnect here. What may be some possible
reasons for such a large disconnect? Politics? No 3Dseismic yet? Since EOG
can never actually drill on its own due to lack of funds and expertise, is the market
afraid that they could not attract a major as a partner at the same price HRT did?