energyreview's slugcatcher says hdr is a bubble , page-13

re: slugcatcher ... abu what about bg? Oil "in the ground" in a deep water find was valued at US$4.00 per barrel 2 years ago in a company takeover off the African coast, makes your US$5.00 out of the ground price look very low.
I beleive that your lower estimate of US$5.00 was ridiculous, if you said US$10.00 to US$15.00 your post would have "some merit", because it may then be in the ball park.

Hi abuman

There's an even more recent and relevant transaction to help you with your numbers ...

BG paid Hardman $132M US for around 11-12% of area A & B. Valuing the whole acreage at ~$1.2 billion US. Presumably this was the best offer Hardman was able to get from any interested party, and none of the partners was willing to preempt, so it must be pretty close to a fair industry valuation of the acreage

If the ONLY recoverable oil in that whole area turns out to be the Chinguetti field (which none of us believe) then BG still paid only a bit over $8/bbl US.

Throw in 200 million barrels recoverable at Tiof as well (hopefully an absolutely bottom end estimate) and BG paid only around US $3.40/bbl. Throw in any more upside and you'll wish Hardman never sold the acreage in the first place.

Whichever whay you look at it, either BG got a total steal, or my range of $5-$10 AUD / bbl stands up.