risked value .. up to spud?, page-13

DocWood, I personally believe that the risked value is calculated by simply taking the unrisked value and multiplying it by the Geological Chance Of Success, being 32%.

What that really means, is that if they hit gas then the value of A1 will be around $3.65, but right now we only have a 32% chance of actually hitting gas, therefore $3.65 * .32 = $1.17, which is our current risked value.

Even though the risked sp value is $1.17, the sp could be a long way either side of that figure due to either speculation or uncertainty.

From what I have been told a 32% GCOS is about as good as it gets in Oil and Gas. Hope this helps.