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Bullboard - Stock Discussion Forum Petro Rio S.A. HRTPF

"Petro Rio SA is engaged in exploration and production of oil and gas in Brazil and abroad. The Company is currently engaged in the hydrocarbon production in Polvo field."

GREY:HRTPF - Post Discussion

Petro Rio S.A. > Probabilities
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Post by plieber on Jun 12, 2013 1:35pm

Probabilities

Darn!  50 Cent SP!  Back in April when the stock was trading for $1.15 I said there's an 80% chance we'd see the SP at $.50 before we saw $2.00.  Unfortunately that prediction not only just became true, but we'll see lower prices yet until any positive news becomes true. 

Lately there has been some speculation on the combined probability of success of Baobob, Murombe, and Moosehead.  These probability figures are based upon D&M's numbers.  Correct me if I'm wrong but even if there is oil in any of these spots it does not neccessarily mean that a single drilling will hit oil in any one of them.   Yes, I know they can change the direction of the drill so presumedly they are drilling the optimal spots for Baobod and Murombe, but there's still a chance that they could miss whatever oil is down there.  HRT is like the gang that couldn't shoot straight.  They can't find oil on dry land, who is to think that they can find oil deep under sea?  The market is saying loud and clear that it doesn't think HRt will succeed in Namibia.

BTW, some of you that have calculated probabities, your math is incorrect.  You should have used an online probabilty calculator (see https://www.calctool.org/CALC/math/probability/3_events , for example).

Comment by landmann on Jun 12, 2013 2:25pm
These probability figures are based upon D&M's numbers Therein lies the problem.  Considering that Wingat was a duster, you would have to assign 0 to it, which skews the remaining estimates. However, on the plus side of the equation is that if we assume the CHAR boys did their geology DD, their two dusters add to the COS for HRT's drillings.  I never have fully trusted the D ...more  
Comment by robnhood on Jun 12, 2013 2:30pm
"but if one does, then the overall COS (for gas or oil) starts to approach 80%." Very hard to believe that. Neither the market nor other possible partners believe that.
Comment by DrillaHill on Jun 12, 2013 2:33pm
...same numbers with your calculator:   Probability of event A 23,4 :1ppm:2:5:10% (:100):1 against Probability of event B 21,15 :1ppm:2:5:10% (:100):1 against Probability of event C 18 :1ppm:2:5:10% (:100):1 against Chance of all happening 0.869400 :1ppm:2:5:10% (:100):1 against ...more  
Comment by gusgold on Jun 12, 2013 3:08pm
Good post and right to the point..if HRT can't find oil in the solimoes, their own backyard..how are they going to find oil in nam..in the solimoes they are 0 for 11..wait they did find that coke bottle, so maybe they found a "liquid oil presence" in the solimoes also..the odds are 95% this is all the oil HRT will ever find..that is why the sp is $.50...face it...HRT could not find ...more  
Comment by gusgold on Jun 12, 2013 3:11pm
Hood, How about turning it around...80% chance HRT does not find oil...you believe these odds...I do