I found the posts from Red2 very interesting on many levels. It...

I found the posts from Red2 very interesting on many levels. It showed how important the number of bidders are to getting value.
The value put on the coy by the Devon engineers of 60-70 cents would be based fairly enough on the current IRR of 139bcf. However in the same breath he speaks of the engineers concluding the reserve would move to approx 350bcf if the gas price was to move to $6 which is predicted for december.
I am sure if a bunch on engineers around a table can work this out - GS and upper exec's can do the similar calculation.
If say Devon was to be the only bidder you get whatever they want to pay but get a two or three bidders and you can start informally adjusting reserves to be based on more realistic gas prices.
You only need one of them to beleive the Devon engineers assessment of the adjustment of the reserves at december gas prices. You double the reserve you double what you were going to get.