Larry,to give you an idea of how the industry values this oil,
Kenny: I've seen numbers used from $3-$6/bbl all around the world, depending on
development costs, lifting costs, and fiscal terms. The number will be different for each
specific development, but you can use the above range for a good
conservative-to-liberal valuation spread. I'm not as sure about natural gas valuations,
but if you convert the above figures to $/mscf at 6:1, you get $0.50-$1.00/mscf. Try
that and see if it get you in the ballpark.Thanks Razorbak-former Murhpy Oil analyst
*************
Ditchdigger, with such wells you must take into account the cost of finding (if they drill
additional wells around) and the cost of bringing the oil up, these are very "small wells"
I would suggest you use numbers closer to $3/barrel. You also must factor in what
royalties or other sharing agreements there might be.
Thanks, Zeev Hed for your opinion DD
*****
Hopefully this will help you determine a realistic value for your oil.DD, |
