re: Ann: DJ Carmichael Issues Research Update...
Johnny, PSC's are rarely that simple hence the reason why brokers generally value companies as net oil (as in the 17m barrels) and usually take out of the PSC requirements in the $ / barrel. Companies are generally valued somewhere between $5-$10 / barrel (once proven) but this doesn't mean that the profitability of the asset is only circa 5%-10% (making it easy using $100 / barrel) its usually well above this, but then the host country will take a sizeable portion of the oil / profits.
I don't think I have even seen a broker report where they have dealt with it in a different way (aside from where a national oil company actually owns some of the equity in the asset).
JKA Price at posting:
18.5¢ Sentiment: LT Buy Disclosure: Held
