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Gold/Mining/Energy : Oil Sands and Related Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Taikun who wrote (10331)	6/1/2006 12:31:42 PM
From: Taikun	Respond to of 25575

Does anyone have access to this report? I believe the author took the deal value of C$2.4bn and divided by oil sands resource, so 800m bbls est at Seal. A couple of points: I have seen estimates of 2bn bbls for Seal, not sure how accurate that is, BVI has 2006 exit prodn target 18-20,000bpd HO production worth approx $600m, that pushes up the price per bbl for oil sands *BVI has $170m in working capital BVI's oil sands properties are vast, and exploration only recently begun, to be fair value should be assigned: Woodenhouse: 85,000 acres, reserve unknown Seal: est 1bn bbls Hilda est 191m bbls Lloydminster:unknown $2.4bn-$0.17-$0.6/2.2=$0.74/bbl in value. Assuming 1.2bn bbls, $1.36/bbl (low estimate for Seal+Hilda) This is without assigning any barrels to 85,000 acres Woodenhouse. Without seeing the SISM report it is diffisult to know for sure, but it seems those numbers, while they might mnake DWOG owners happy, are a bit rich. So, instead of 2.20 using 0.74 and that would seem to necdessitate adjusting the target.

To: Taikun who wrote (10331)	6/1/2006 5:30:47 PM
From: Metacomet	Read Replies (1) \| Respond to of 25575

Deep Well pays SISM Research $1,750 per month over a two-year period solely to ensure independent coverage. That ought to be worth at least another $2/ barrel of the uncertified reserves, doncha think?