richard: <<Is this kind of like a detached retina?>> Yes, actually, and just as painful, too. <g>
<<I am sure this is their discounted present value of their reserve estimates and is higher than any other I've seen; however, I do respect their expertise>>
The assumptions Strain used in the Research Report (3/12/97) are listed below:
"The estimate of probable reserves by independent consulting engineers should be available by the end of the month and should indicate more than 600 million barrels of oil have been identified. Strain Consultants estimates that each of the South Toma, El Toor, and El Nar fields will ultimately produce more than 200 million barrels of oil and that Heglig and Unity fields combined will produce more than 300 million barrels combined. With four rigs to be working within a few months, we remain confident that more than 2 billion barrels of reserves will have been identified by the time that the pipeline starts up in 1999."
"Strain Consultants sees no reason to change our estimate that the concession will ultimately produce at least 2 billion barrels of oil and the 25% interest of Arakis has a present value of approximately $16 per share [USD]."
Finally, regarding your last paragraph:
<<Both the Strain and Credifinance research reports you refer to preceed the Sands buy-in and I wonder how this event, the progress toward peace in Sudan, the McLeod ouster, Oman prospect have tempered their respective outlooks.>>
Excellent question!
Does anyone have a more recent update of Strain's Research Report on Arakis? If so, please post relevant details. Otherwise, maybe someone should call Mr. Strain tomorrow and ask for his opinion verbally? Either way, I'm sure others on the thread would appreciate the info.
Here is Chuck's office phone number, in case anyone decides to call: (713) 975-9260 [from the bottom of his research report]. I'm out of pocket most of the day tomorrow, so I won't be able to call myself. If anyone decides to call, I would strongly encourage them to please post a note on the thread first so others don't call right behind you. We don't want to wear our our welcome. Remember, Chuck, unlike Kristine Dow, doesn't actually work for Arakis. <g> |
