Cujo ................... I never post conclusions as IMO its up...

Cujo ................... I never post conclusions as IMO its up the the individual to draw their own conclusions all I am doing is researching acquisitions and posting what I find however I will state that when/if anyone looks at the M&A activity in the upstream O&G industry they will find that they consider only the acquisition cost as a factor of the reserves and not productivity. A company that is producing say 15,000boopd and 50 or 60m boo reserve is not worth as much as a company also producing 15,000boopd but has 250m boo 2P reserves!!!!

Upstream oil companies MUST have an active reserve replacement plan otherwise they will eventually close their doors the most difficult part for the company is to decide whether they spend millions on exploration or millions on 2P proven reserves, obviously the later has the advantage of a known figure for the reserve which, if the appraisal program has only just started acca Senegal, they then need to work out a premium on the chance the 2P resource will increase if that so by how much!!! obviously all HC posters would consider this chance to be reasonably high and no doubt management would to.

HKP