drill results from massive target due anyday!, page-12

"Arkie do you realise the valuation in that chart is based on oil at US$130/bbl and gas at US$13/mcf?

I'm not saying there's no value here but those numbers need some serious work."

Footnote in presentation states:

"Above valuation is based on Augustuss 40% working interest in Silverwoodand assumes an oil price (NPV) of US$30.00/BBL and a gas price (NPV) of US$3.00/MCF (based on a long-term oil price assumption of US$80/bbl)."

Considering where oil price is now and has been in the past a LONG TERM assumption of $80/bbl appears fairly conservative IMHO.

Also I think you might need to look at those figures again....ie $30 not $130 etc ;)



http://futures.tradingcharts.com/chart/CO/M

Cheers,

Arkie

:)