Ann: OEL: Alaska Operations Update - Winx-1, page-108

I have no idea why you are now relating this to MC valuations.

You are employing the classic switcheroo. My post was directly to your post about valuations in AUD-USD.

All validation models relating to Alaskan North Slope activities are done in USD, ummm fact.

Greg Bandy can apply what ever value he likes on YouTube, he can say oil is worth $30 bbl to RMP if he likes. I means nothing.

RMP are providing capital only, as the operator 88e do not provide valuations as it's illegal, so what they do is provide a number of costings to form a basis of valuation.

Let's look at some numbers.

ANS Oil sells for $65.09 bbl

The overriding Government royalty is 16.67%

65.09 - 16.67% = $54.24

Capex on the North Slope is widely accepted to be around $40 bbl

$54.24 - $40 = $14.24

TAPS will probably cost around $6 bbl

$14.24 - 6 = $8.24

So $8.24 per barrel.

There is no way the Consortium Partners are going into production as the permit does not allow for it.

You think it's worth $7 barrel to RMP, that leaves $1.24 bbl to anyone who wants to buy it and then take Opex out of that?

That's why OSH paid $3.10 bbl.

There is no money in it at $7

Cheers