Trader,
Not all reserves are equal - would you agree?
If you made a massive find with squillions of bbls of oil but your netback after all F&D costs was $5 bblo and oil is at $80 bblo then that is not as attractive as another where the netback is say $50bbl. Liking what MAD has.
Moving from PUD reserves to PDP reserves is what it's about - especially with small acreage. Does no good to have decades of drilling - unless you want to sell off pieces like CHK/DVN and the like or get acquired. The acquirer will look at both PDP and PUD reserves and pay for that, the rest is dirt and carries an acreage $value.
So yes, anything that accelerates production helps realise the value of the company - but the reserves aren't going anywhere but out of the ground and into a pipeline and getting sold by MAD.
Do you have a favored valuation model?
- Forums
- ASX - By Stock
- FDM
- placement
placement, page-40
-
-
- There are more pages in this discussion • 33 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add FDM (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
ACW
ACTINOGEN MEDICAL LIMITED
Steven Gourlay, Managing Director and CEO
Steven Gourlay
Managing Director and CEO
SPONSORED BY The Market Online