Think your 200M barrels will end up being conservative Murdock.
On their website ERH state they already have an estimated 140M oil in place...that was written pre PACA2.
PACA2 will result in a massive upgrade of estimated oil imho (Phil pretty much states that in boardroom radio interview).
And they haven't even scratched the surface at 430 yet..I think they will exceed their current reserve estimate at 430 once they throw some more holes in.
Of course, as ciggy states, its not so much the OIP that is important but recovery rates, and costs of production (since that will determine their development well potential, and of course profit per annum)...but based on the 330 result, I expect recovery rates will actually go up as weill oil flow per day.
Unfortunately at current oil price, the market just doesnt want anything to do with oil stocks.
Had a chat to some research guys that I know are quite cluey, they reckon this oil price is unsustainable and expect it to track back to $60 simply because major oil producing companies will not stop cutting oil production until the price actually does to that...quite simple when you think about it.
Interestingly, in BRR interview, Phil states that ERH can survive even with oil prices well under $30...either he is telling a furphy or it is a legitimate comment. If legitimate, indicates just how low cost this is.
I'm not a trader, so am happy to wait for all the above to come to fruition. Others may not be so patient...good luck to them if they can make short term profits and switch to better performing companies. Tried that a few years ago and failed miserably so I'll stick to what I'm good at.
Cdchi1
ERH Price at posting:
23.0¢ Sentiment: LT Buy Disclosure: Held
