I like Kahuna's price estimates and my bank manager and I live...

I like Kahuna's price estimates and my bank manager and I live in hope...

Chinguetti was also good at pricing HDR, and used a figure of $5 net benefit per barrel - Kahuna now uses $10 (US $$$, I guess).

I imagine that this net figure takes into account the cost of exploration, production and marketing, but how does any calculation incorporate the present/forecast price of the crude? Is it a rolling average figure? When Chinguetti presented his various P Hardman prices, crude was fetching around $25 US - now it's around $40 per barrel and apparently set to rise to $50.

Logic indicates that a net $5-10 errs on the low side. So, if the crude price increases and the AUS $ stabilises or drifts lower, what is the real worth of a barrel to Hardman's price?