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To: Micawber who wrote (106304)	1/17/2012 9:59:42 AM
From: Spekulatius	Read Replies (1) of 118717

45M BOE with an EV of 950M$ is not exactly cheap with 1/2 of it being NG. NG spot price is <3$/mcf, so what is a MCFE of NG in the ground worth - probably no more than 1.5$ MCFE. Use the 6 mutiplier to convert MCFE into BOE and the NG part is worth roughly 10$/BOE - that is 22.5x10=225M$ in value for MHR NG reserves.. What this means is that oil part of MHR NG reserves is valued at 950-225M$=725M$, which for 22.5M BOE translates into 32$/brl in the ground. Not exactly a killer deal in terms of reserve value nowadays, assuming my numbers are roughly correct.

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