value of heron and blackwood?, page-3

Thanks Needle.

40% of 7.7Tcf = $200M

Therefore,

1Tcf valued at =$65M

- If Heron to have 5 Tcf gas, it would have value = $ 325 M,
- at 70% recovery rate, Heron will have value = $227M

Plus

Blackwood hold 2.5Tcf *, value at =$162.5 M
-at 70% recovery rate = $114M


Based on the above, it appears that MEO's Heron + Blackwood should have value of approx $341 M , which is not reflected in the current SP.


*
source : http://www.petroleumnews.net/storyview.asp?storyid=196693§ionsource=


Blackwood-1 confirmed 49m of gross Plover formation gas-bearing sands to a gas-water contact at 3188m subsea. It holds close to 2.5 trillion cubic feet of gas ? of which 1.7Tcf is likely to be recoverable ? but 25-30% of this gas is carbon dioxide, which is why MEO has chosen to develop the field for methanol.