so the GCoS is a constant for both, I'm using 0.2 because it's just easier for the maths in reality it's that 0.163-0.225 range presented. Its simplistically a function of source rock presence/ability to form hydrocarbons and trap presence (impermeable shale in such a shape that it can trap the hydrocarbons.
The difference between those two numbers in the table, OOIP and Prospective the recoverability factor. Here it's about 30% which isn't uncommon for oil.
In short you'll never get all of the oil out of the ground for a multitude of reasons. There are techniques you can us enhance oil recovery (eg fracking) but they're not super common in deepwater.
Does that answer your question?
My view right now is that PCL is effectively value at a risked Oryx and Hyrax leads minus drill cost with maybe a small discount for uncertainty on a drill. If it trends down a little more I'll likely buy in on the chance they get a partner and lock in a drill.
PCL Price at posting:
0.9¢ Sentiment: None Disclosure: Not Held
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