ARPETROL LTD V.RPT

2P Reserves as of Dec 31 2012

[TheRock07]

RPT its 2P reserves prepared by Gaffney, Cline & Associates Inc. effective December 31, 2012 (the “GCA Report”).These are located in the province of Santa Cruz Argentina.
 

The GCA Report presented a 3% decrease in proved plus probable natural gas reserves (gross) from 43,369 million cubic feet (“MMcf”) as of December 31, 2011 to 42,210 MMcf as of December 31, 2012. This decrease was due to volumes produced in 2012 and an adjustment to gas shrinkage.

The GCA Report also presented a 28% increase to the net present value of future net revenue of proved plus probable reserves (before deducting income tax; discounted at 10%) from US$96 million as of December 31, 2011 to US$123 million as of December 31, 2012.

This increase was due to a combination of higher realized natural gas pricing (US$4 per million British thermal units (“MMBtu”)) available under the Argentine Gas Plus program and an assumed increase in third-party gas plant revenues to reflect current market rates.

Natural gas prices have continued to increase in 2013.

The new update dated Dec 31 2013 will be released shortly.

I expect to see a modest decrease in volumes but an increase in valuation due to higher gas prices.

The PV10 was $123 million in 2012 and should perhaps approach $140 million this year.

With a market cap of just $9 million and annual sales of about $15 million generating operating earnings of about $6 million, this one is a no brainer
 

 

[Shortylongback]

Great post Rock! It's very quiet on this BB lately.....but your great posts don't go un-noticed! someone was able to get in at a penny today, and it wasn't me :(  i will be adding for sure this week!