Ann: Investor Presentation Material , page-108

The simplest way and the valuations come out so close is like this

Oil price: $70net Gas Price $3.75net
well tax+Ryls
Well name boepd boeyr rev pa well Rev -40% AUT's Y
Morgan 1000 12000 $840000 0 $504000 $110,080
Rancho
etc
etc
etc
20th well
Total $23,700,000

PE 10, 10 * $23,700,000 = mcap $237,000,000
But that gives no value to future wells,

I like to then add in 10% of next few years wells , 30 wells, predominantly on Longhorn with $4m income per well to AUT * 10% value = 30*400K = 12M

2012 50 wells = 50* 300K = 15M
2013 15M
2014 15M

Whats clear now though is the market is re-rating AUT and applying a lot less risk to the future wells. I find this a lot easier then using RR. And just as acurate in this case, as it has 100% reinvestment.