CGX Energy Inc V.OYL

Valuations

[BoykJurko11]

Maybe someone can clarify/correct what my understanding is. Exxon Liza 1 was 300 million barrels. Plainview Oil had said that if achieve 50% recoverable then you're doing great. If memory serves (I'll have to go back and check), they drilled 15 wells on Liza-1, (3 of them production, 12 of them gas or water injection).

The CEO of Hess said that total E&P costs, including taxes was around $30 per barrel. To me, it seems that if someone were selling 150 million barrels recoverable, discovered, light, sweet oil in ground then a buyer would pay much more than $5 per barrel for it. I'd think more like $15 per barrel. What am I not understanding here?

[Mat1791]

IMO, if the drill is successful we won't be around for production.   $5USD hypothetical is for in ground equivilant not recoverable. That may square up your number if your using pricing for recoverable ...

[BoykJurko11]

Yes, I'm just trying to come up minimum required recoverable to establish a base line for valuation. Say they have to drill 15 injection/production wells. That's about $1billion. FPSO ranges from $300 million for about 20,000 bbl/day production capacity to $3 billion for 250,000 bbl/day. So lets assume $1 billion for an FPSO around 80,000 per day production. Add on subsea tie-backs. I have

[Mat1791]

"We found oil, who wants it". $2 - $7.5USD per estimated BOE.  Bye, bye.  All the rest of your post is someone elses worry. Find oil, sell potential, no longer a going concern..

[BoykJurko11]

Great idea Mat! Bye bye!