the age article , page-2

Good to see a write up that pretty much repeats what the company has been trying to say over the last few days (via a slideshow & the D&M report). Perhaps the journo could have trolled the bovespa site & posted a peer comparison, or bothered looking up the energy players in Brz, but still early days on that front.

Here this should make their job or anyone else's easier:

PBR: 1P - 14.6 BBoe
OGX: 6.672 BBOE (Net risked Contingent resource)
Vale: 210 MMBOE
KAR: 577 MMBOE (risked, 2080 mmboe unrisked on 100% basis)
BPZ (Peru): 1P-42.73 MMboe, 2P: 107.15 MMBOE, 3P-138 MMBOE.

Probably could make it juicier by throwing the mkt cap, cash on hand & converting that frm REAL to AUD, but for now let someone else worry abt it.

Here's the link to Bovespa Energy stocks Not many as u can see, just the 2 big guns OGXP3 & PETR4 (Vale r under the mining category & BPZ trade on the NYSE).

Its clear that our mkt or Insto's will not appreciate KAR's 577 mmboe, which isn't even factored in the SP as off yet. Pico da Jaragua which means 'Lord of the Mountain' (& all the prospects r named after Mountain peaks in Brz including Igreja - Hill of the Church & Roirama (Table Mountain). Pico means Peak. Jaragua itself has a 47.5% CoS & is lit up by the DHI's frm the seismics. The rationale behind KAR seeking a listing on the Bovespa is simple, b judged on the basis of its resource in elephant country, hence the spin-off. Anyway, will see what the drilling thows up next year, over there.

KAR's NV for Brz assets is worth: US$2.9b (slide 18)
NPV for Sth America: $5.92*577 = US$3415.8 mil
NPV for Browse: 40% of US$6.9b = US$2.76
Total: 2.76b + 3.415b = US$6.175b (or A$7.72b)

Divide that by 177.5462 mil shares on issue & Bob's yr uncle, based on their internal NPV valuations.

The logic behind the spin-off is similar to what Arrow Energy r doing.

There QLD CSG project is in the process of been t/o'd by Shell-Petrochina for A$3.44b & Arrow's International Ops will b spun-off & listed on the ASX as Dart Energy at some point.

Later....