BRK About to go!!!!, page-44

Eyes on SHE will be or will become eyes on BRK .... Admittedly , SHE have a better balance sheet than BRK but ALL the money SHE spend ( excluding the ORION JV and their 2 original wells ) funds BRK activity directly. Not sure many of the newer SHE investors are fully aware of that fact.

The more successful SHE becomes (in terms of share price, production etc) the better for BRK as they are the primary funder so as BRK holders, we should be cheering them on as much as we cheer our company.

But the majority of the value is always in BRK.

Take the Jewell well for example... even with a Zero BRK equity in the well, If SHE fund 20% of the well and it proves up 4 million BOE made up of 800,000 BOE in PDP reserves and 3.2 million BOE in PUD reserves, SHE end up with 160,000 barrels in PDP and zero PUD. BRK end up with zero PDP but 2.72 million BOE in PUD ( 85% of 3.2 million if no non well bore funding dilution occurs)

The NPV10 of 160,000 PDP reserves at US$ 20 a barrel ( good luck getting that much attributable value per barrel) is $ 3.2 million.... The NPV10 of 2.72 million BOE PUD , even at a modest US $ 3 ( would be more like 4-5 dollars a barrel) is almost 3x greater.

Again, the above is excluding the 25% back in that Black Mesa receive after payout .... and we all know which company owns 50% of the BM funding equity and therefore effectively books 50% of the BM back in , don't we?

If the market starts to get SHE then it will also get BRK... they are joined at the hip.

Cheers

Dan