ash creek npv, page-11

Wickers

more good work thanks - name your own salary!!

now, you put a NPV of $68m for Ash - seems reasonable to me, but does it enable me to determine a 1P, 2P or 3P value for ELK reserves generally?

It looks like a 1P scenario. Valuing 1P at $22 /bbl approx

Elk have indicated that chemical report may enable them to upgrade reserves to 2P, which will be the main determinant of sp post reports.

I put an in ground value on 2P reserve of $10.00 / bbl, but without a lot of science behind the number.

This would value all ELK reserve, post chemical reports, as approx 14.4 x $10.00 = $144m.

Do you, or any other Elkateer, have a better $ value for 2P?

Currently, if reserves are classed as 3P, the in ground value is only about $1/bbl, which does seem low.