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Strategies & Market Trends : Value Investing

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To: Paul Senior who wrote (38850)	8/17/2010 10:23:18 PM
From: Spekulatius	Read Replies (1) of 78652

NimIn.TO - what makes me a bit suspicious about the NPV calculations is that they value probable reserves almost the same way than probable. For example in the Cooperate summary, they value the 11.9M BOE at 215M$ (18.1$/BOE) and the 27.9M$ proved+ probable reserves as 476M$ (17.1$/BOE). So i wonder if they include the Capex that is surely needed to develop probable reserves into proved ones. Last time I checked, oil does not bubble out of the ground when you put a stick in the ground <g>. niminenergy.com Just for a comparison, TOT is valued at 12.5$/ BOE proved reserves and about 1/2 that for proved plus probable. Both are as different as companies can be, of course, so it is not a valid comparison. Even though this sort of tells me that if I apply the same logic that E&P apply to value their reserve base, TOT would be worth 80$/share, which i would gladly take.

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