They will not put up their resource statement because they are in monetisation phase.
Sounds crazy but makes sense when you understand the nuances /dynamics of the situation.
The way BRK would develop their resource ( 1 well per quarter over 5 years) would mean they would extract less BOE's at a slower rate than the major that will purchase their acreage. The major will be able to extract a higher reserve from the resource at a faster rate by using say 2 rigs back to back. This will lead to a large capital expenditure, but significant cost savings per well due to long dated contract prices and saving on mobilisation/ demobilisation which are ~US$ 250 K per well. The pads will allow up to 6-8 wells being drilled. The NPV of the BRK acreage will be much higher in the hands of a major than BRK because of the front loading of the flush production cashflow over 18-24 months, rather than spreading it out over 5 or so years.
BRK will not put up their reserve number because it will top cap what they can get. They want the buyers to put up their numbers and go from there.
Cheers
Dan
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