AOK 0.00% 0.3¢ australian oil company limited.

Inground value is just a quick shortcut for getting a ballpark...

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  1. 646 Posts.
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    Inground value is just a quick shortcut for getting a ballpark valuation.

    The well will only drain 100 acres - which is far lower than the resource size.
    So you can do a valuation for the 100 acres (which would be high per mcf), and a separate one for the remaining resource (which would be much lower per mcf). Then add them together.

    Or just apply a generic valuation across the entire resource.
 
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