paulharris that’s a nice bit of research there well done. As a...

paulharris that’s a nice bit of research there well done.

As a bit of a cross check on value per PJ - QGC had around 2500PJ of 2P gas when BG paid approx. $5.3B for them so that equates to $2.1M/ PJ and is uncannily similar to your $2.28M/PJ.

Also Conocophillips paid $1.88M/ PJ for its stake in Origins 3P reserves in 2008. And yes that’s for 3P reserves so if you based it on 2P then that price per PJ would be much higher. Similarly Petronas paid $1.65M/PJ in 2008 for some of Santos’ 3P reserves also.

All of the above numbers are obviously from 8 years ago but particularly the QGC deal was done in the middle of the Global Financial Crisis and oil was around $70 at the time and under $50 in early 2009.

So all in all I’d say your $/PJ calculation and hence valuation is very plausible.

Now we just need the share price to reflect the value of the reserves!!