June 2017
NPV10 = $69.8M for Total Proved & Total Proved = 5,497,000 Bbls of oil
but more specifically we need to look at just the PDP (surely we have all learnt that is measure by now!) PDP = $39.49M and 3,115,000 Bbls of oil
May 2018
NPV10 = $6.89M for Total Proved & Total Proved = 568,000 Bbls of oil
PDP = $0.97M and 70,000 Bbls of oil
Is that clearer? We keep 15% WI so approx 10-12% NRI I think. I'll use 10% for simplicity and produced 139,000 Bbls oil in 9 mths reported to Mar 31 2018
PDP should be 3,115,000 - 139,000 = 2,976,000 9should be as NRI of property)
SSN retains 15% WI/10% NRI the I would expect 297,600 Bbls of oil not 70,000!
Another way of looking at "The Mirage" (which is a Casino in Vegas) is June 2017 ... PDP = 3.115/5.497 = 56.7% of Reserves
May 2018 ... PDP = 70/568 = 12.32% of Reserves
Sorry but that reads like bullshit to me AND like I said no wonder MOB wanted out. I want to believe that Eagle Energy Partners will get their "Debt Financing" but what lender in their right mind would lend given the massive "impairment" of PDP reserves.
I'm happy that people are happy to get something ... and the "Truth will set you free". The "reality" about the Reserves was probably well known in my opinion (explains DynEvolve exit for me), just not by us shareholders.
Nothing ever appears at FV (Face Value).
SSN Price at posting:
0.2¢ Sentiment: None Disclosure: Held
