$115mil fantastic news, page-28

Hi Bignote

I disregard the 12mil barrel figure that Denbury put forward based on their projects...Most of those projects had been extensively waterflooded and it was in their best interest to negotiate on a low recovery figure....The simulations carried out specifically on Grieve produced results of 18-23mil barrels.......So it is fair to assume we are looking at between 6-8mil net barrels....

"...but is a valuation of $100m reasonable?"
$115mil is based on the NPV put forward by Ryder Scott at the low end of recovery.

"So given higher extraction costs etc, is this NPV and IG price reasonable?"
I can only assume Ryder scott factored in recovery costs when working out the NPV....

When I indicated $1 a share was possible it included the other projects especially the Niobrara. Oil shale plays seem to be getting significant support from punters...

Cheers