will we follow today ??, page-30

TOT,

I didn't explain my Tcf - so you were right to say "what the" because its a conservative method of valuation I use for Prospective resources.

"In 2007 Woodside signed a key sales terms agreement with the Chinese for about 2TCF at a price of about $9-10 billion per TCF for delivery over the next 20 years from the Browse Basin."

So I give $2billion to allow for risk (20%)

The point was comparitive though.

KAR resources vs CUE resources - which still stands.


Please note:

imo
BOE is just irrelevant volumetric comparison to oil that has no bearing - I like to keep to cubic feet and joules

Lastly, and this is probably the only real point of difference I have.


You:
"Caterina say 50% post farmout of conservative 7 tcf = 3.5 tcf

That isn't even close to conservative.

first
The 7Tcf is the p10
At least use p50 which is 4Tcf

second
Caterina needs to be drilled before any real confidence. It doesn't even need to be successful - we just need the info so that the 3d work can be corroborated.
A good example of this is Artemis - Zeus was a dud - but it gave the info to give Artemis one of the best set of figure I've seen. That is - the p10 p50 p90 are so close together.

third
CUE has no history of holding 50% WI.
With their building cash flows I would support a risk management strategy that moves closer to this - BUT I personally doubt it will happen.

cheers