crucial fact, page-51

Sharks,
I acknowledge that you provided an answer but frankly it compared apples with oranges.
As an experienced oil and gas investor as you so eloquently put it, I know a few more things:
1. If you drill a bunch of Proved Undeveloped well locations and they come in dry, a downward revision is due (to both recognise that those locations did not in fact contain the presumed economically recoverable barrels AND to account for revisions to expected performance at offsetting locations).
2. I never said that the act of farming out is hocus pocus, though it is incredibly odd that a well funded company with an enormous inventory of PUD locations would farm out its reserves and spend money drilling exploration wells in the same field rather than using its money to drill the low hanging fruit and focus on exploratory drilling once the reserves are getting low. I can't think of a single example of a company that has done that in such a play where a large number of PUD wells can be drilled for relatively little of the company's cash balance. Aurora farmed out many years ago because it didn't have sufficient funding to drill multiple $10m EFS wells itself.
3. Your 3rd point is mere speculation.
4. Aurora didn't farm out its interests to Marathon. Marathon acquired its interest in Sugarkane from Hilcorp Energy.
5. Using Aurora as an example, when its reserves and production multiples were out of kilter the market took the opposite view to the MADness and marked up the valuations on the basis that the reserves were real and production had to play catch up.
Short.