The discount however as applied discounts the whole lot to 20...

The discount however as applied discounts the whole lot to 20 years into the future.

The actual calculation is a lot more complex. This years no discount, next years discount 12%, 25%, 40%.... adding 12% each year.

IF there was constant flow you can work this out as a mathematical sum of geometrical progression, of course oil production will peak in a few years once all wells drilled and decline from there so if you assume on average production will be about 4 years into the future and reduce the whole amount by about 60% you should be about right.

Oil will of course only increase in price from here!

Costs will baloon out in the last few years and likely will be borderline economical within 7-10 years.

I would put a real value of about $2 billion on it minus around $250m total operating costs.

Say $1.75 billion in NPV to today or about $10 per share.

Pretty good!

However you do the sums it looks pretty good!