re: ssb report
Evaluations like the SSB report are more useful for companies to perform when evaluating the viability of a discovery.
Using long term averages like US$21 per barrel sale price are meaningless when evaluating a companies current worth unless the oil price is actually $21 pb.
Long term averages are comprised of peaks and troughs. At the moment we are in a peak stage for oil (around $30 pb). Therefore if SSB are to derive a CURRENT valuation for hdr, then it makes sense to use the CURRENT oil price. They state that for every $1 increase in the oil price above $21, adds 0.07c to the hdr share price. This would therefore add around 67c to the current valuation of $1.45. I realise this is all hypothetical given they aren't actually producing, but it was an exercise that SSB performed and should relate more to actual real oil prices and not long term averages when assessing current valautions.
Just a thought that struck me when reading the report.
HDR
hardman resources limited
