Can someone please explain the following. Are we comparing apples and oranges?
Today RFE announced their new reserve report:
1P Reserves = 14 mmboe.
NPV 10 = $196 million
Comment by RFE: Group 1P net present value has increased to US$196.3 million (previously US$89.2 million), which is expected to underpin a significant increase in the Company’s borrowing base and provide funding flexibility.
On March 19th 2013, AOK announce their latest reserve report:
1P Reserves = 7.6 mmboe.
PV10% Future Net revenues = $198 million
Is the "NPV10" quoted by RFE the same as the "PV10% Future Net revenues" quoted by AOK?
If so, on that basis AOK's reserves are worth about twice as much (on a BOE basis). Also if NPV is the basis for RBL facilities, then AOK should get a massive facility relative to is market capital! ???
Quoting from RFE announcement July 1st (1p PV10 = US$144 million):
"The Facility has been increased to US$100 million with
the borrowing base increased to US$45 million. The
increased borrowing base reflects a significant uplift in
the present value of the Company’s proved reserves as
at April 30, 2013."
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