morgan the monster, page-45

Hi OGG,

My numbers are based on 120 wells net to AUT. This fits in the range stated by AUT of 80-130 net wells to AUT.

You have used 50 acre spacing which I have not used previously. Hopefully spacing can be reduced from the currently most optimistic state number released by the company of 80 acre spacing.

You mentioned the below in your reply:
"Page 24 using the NVP values your qupting has 400-650 wells. The 80-130 is for 100% interest. Yet you appear to be using the 10% NPV figures approx"
You might be confused to the meaning of NPV 10%? This is the net present value of one 100% owned well using a discount rate of 10%. AUT has 80-130 net well locations for full field development so AUT's value should not be a multiple of 400-650 wells.

I agree that a variant for changes in input values such as oil and gas prices will change the valuation, which i use, but for simplicity here ive used the $70 oil, $4 gas state in AUT's numbers

Hope this helps to clarify my position?
Impact