FAR 0.50% 49.5¢ far limited

Value of SNE, page-67

  1. 4,721 Posts.
    lightbulb Created with Sketch. 226
    Ya,

    it would be fair to say that sunk costs are not a reliable method to calculate "fair value" of an oil and gas asset.

    closer would be:

    PV10 of forecast production at current fwd curve * by whatever risks factors one wishes to use (geological / political etc)

    so, in very simple terms:

    at discovery - asset is worth "barrels in the ground" (say 3-5)
    after appraisal (5-7)
    at FID - 7-9
    after capital spent (15-25+)

    all of these are oil price dependant, as it deterims the net cash flow (as do the terms of the PSC in this case).

    rgds
    V_H
 
watchlist Created with Sketch. Add FAR (ASX) to my watchlist
(20min delay)
Last
49.5¢
Change
-0.003(0.50%)
Mkt cap ! $45.74M
Open High Low Value Volume
50.0¢ 50.3¢ 49.5¢ $74.71K 149.9K

Buyers (Bids)

No. Vol. Price($)
1 37432 49.5¢
 

Sellers (Offers)

Price($) Vol. No.
51.0¢ 202895 4
View Market Depth
Last trade - 16.10pm 06/09/2024 (20 minute delay) ?
FAR (ASX) Chart
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.