from what i understand....the way they use to value the company is by p10, p50, p90
p10 figure is always highest as it is optimistic...p10 means only 10% chance of striking the amount of oil they indicated
p50 figure is mean figure---they use this mean figure to work out the "fair" value of their potential reserve..usually this is what they go by....50% chance of striking the amount of oil
p90 figure is always the lowest and most conservative...it means 90% chance of striking the amount of oil...
p50 is the most common figure industry use to calculate the pre-drill value for the company..whn has about 5 billions of p50 prospective mean oil reserve, steve has made it clear in brr that this figure was worked out base on 40% of their reserve something like 13 billion.......so 40% of 13 billion will be around 5 billion.
when they announce the confirmation of 5 billion proepective resouces, many people asked why it has reduce from 13 billion to 5 billion.....it face, the total potential reserve did not decrese, the 5 billion is actually the mean prospective resource which was 40% of 13 billion.....am i making myself clear?
anyway...the nasi is going to confirm this p50 mean prospective resource...we await.......
NO ANY OIL AND GAS COMPANANY VALUE $1 PER BARREL PRE DRILL...
dino, if you can name any reference, i am happy to open my mind and learn it...thanks
QFY Price at posting:
6.3¢ Sentiment: Buy Disclosure: Held
