"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
:)
AUJ Price at posting:
20.0¢ Sentiment: None Disclosure: Held