Technical Analysis, page-110

We have had some great posts to date and some really good info by yourself and other posters.

I have been in oil and gas for quite a few years and the way I look at this is that they have proven oil is in the ground, lots of oil!

Next we need to know how much oil and what it costs to get out as well as having a guess as to what the oil price will be in 2-5 years when they look to produce. This will allow us to value the oil in the ground based upon the expected future earnings.

Typically recoverable oil in the ground is valued at $5-10/bbl obviously depending on the economics of extraction. 88E based on current MC and expected resource still only reflects about $0.08/bbl so it is very easy to see why the technicals still look so strong. This is still mid way through a fundamental rerate and the good news pipeline keeps providing reasons to increase the value of all that oil in the ground.

IMO as reserves are firmed up 15c is basically a given, 50c is quite well within reach and $1-5 are not unachievable when into production.

We are talking truely massive amounts oil and it's currently undervalued by any methods I have found which is why I'll keep holding until the market catches up.