This is quite simply the realistic views of the professional evaluators versus a hyped up ASX/LSE listed entity who has made comments such as 100 - 200x increase and 3bln recoverable even after being shown the IRR clearly shows that they (88e) are incorrect based on all current known facts.
Its like a new startup developer I had to listen to today ramble on about the $1.5m profit hes going to make in the enxt 12 months.
He said the 5 houses would sell for $550k each, I said they are tiny low budget townhouses on a small entire block, community titled, etc etc and would not sell for more than $410k each.
Valuation report and QS report came back today showing $395-$418k each.
This is the difference between pleasure and pain.
The overzealous tend to overshoot, and yes occasionally the valuer under quotes to cover internal and external expectations.
That being said, the report showed to me this is 100% uneconomical and will never be in production.
Its up to DW/PB and the company to prove otherwise, then find a farmer.
D&M’s North America Division is responsible for studies and evaluations on the lower 48 states and Alaska, as well as Canada.
The North America Division reviews thousands of petroleum properties annually. The majority of these projects pertain to reserves and resources evaluations for oil and gas assets. Given the turbulence in the oil and gas industry, the North American Division is heavily engaged in acquisition assistance, divestiture assistance, and fair market value studies.
The North America Division has completed more than 400 studies over the past three years on unconventional resources across the region. For example, D&M geoscientists have evaluated almost half of the unconventional wells that have been drilled within the Eagle Ford Shale play over the past seven years. The firm has developed proprietary tools that support enhanced evaluation of unconventional assets, specifically well performance.
Given that team members average 20 years of experience in the industry, clients are getting opinions that are backed up by a solid understanding of the market.
As the leading independent consulting firm focused on the petroleum industry, DeGolyer and MacNaughton provides unbiased and informed answers to clients worldwide. D&M skillfully blends energy economics, engineering and the earth sciences to help clients in more than 100 countries make the smartest decisions regarding exploration, recovery and management of oil and gas resources. The firm’s services include: resources assessments, reserves consulting, reservoir modeling, geologic and petrophysical analyses, development planning, guidance with financial reporting issues, and financial forecasting for petroleum discoveries.
88E Price at posting:
3.5¢ Sentiment: Sell Disclosure: Held
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