TSXV:CART.H - Post by User
Post by
nozzpackon Feb 23, 2022 8:02am
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Post# 34452980
Gross under estimate of RK field NPV10 based on 2017
Gross under estimate of RK field NPV10 based on 2017 Reviewing the Reserves Report for 2017.....the basis for which, Prorata to gas price changes, NPV10 is based....I discovered that 2017 Reserves included a 2.75 MMcf technical downgrade due to the fact that The Rusko-Komarivske (“RK”) which was in production until April 1, 2016 when it was temporarily suspended due to a termination of a gas blending contract that reduced the nitrogen content of the gas to meet local pipeline specifications.
However, Kub purchased 2 NRU units in 2021 and the RK field once again production in mid 2021.
Hence, whereas my 2022 RK valuation is based on 2P of 5.0 MMcf in 2017, the 2022 Reserves will be based on 5.0 MMcf plus 2.75 NMcf = 7.75 MM cf which is a 50 % increases in my computations of RK NPV10 .
So,2022 RK NPV10 adjusted for technical upgrade due to NRU = $17 million US times 1.5 = $25.5 million US based on the lower 2022 gas price assumed , rising to $29.5 million US times 1.50 = $44 million US assuming the higher 2022 gas price .
My apologies for that error..