Jezza, you seem to have assumed that KAR's permits are in very deep water like Petrobras' Tupi and Carioca fields - that is not the case. Therefore the assumptions you are making about costs to develop and produce are ludicrously high, should a discovery be made. The different areas cannot be compared.
As to the value of the permits, Scott Hosking's appraisal of $1b for each of the five permits in the current heated climate in Brazil is well above a few cents per share value (closer to $10/share). That estimate may very well be way off the mark, but it probably indicates what they think they could raise if they were to float off the permits on the Brazillian exchange. NB: You seem to be a little negative since selling.
good news on drilling and brazil, page-9
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