05-25-2013, 01:28 AM
Let's try this again.
From Platts: " Horizon currently holds 50% of Stanley and 45% of Elevala and Ketu, where its partners are Canada's Talisman Energy, Japan's Mitsubishi and local company Kina Petroleum. The company's net certified reserves and contingent resources in PNG's Western province total 125 million barrels of oil equivalent."
So Osaka is paying $204 Mil for 40% of 125 million boe.
If 6mcf equals 1 boe then 125 mil boe equals 750 bcf.
40% of 750 bcf equals 300 bcf.
300 bcf at $.70 mcf equals $210 million. So call it $.69 an mcf with $74 million up front.
This is likely the best comp we have. I think it is important to get it right.
Comments?
From Platts: " Horizon currently holds 50% of Stanley and 45% of Elevala and Ketu, where its partners are Canada's Talisman Energy, Japan's Mitsubishi and local company Kina Petroleum. The company's net certified reserves and contingent resources in PNG's Western province total 125 million barrels of oil equivalent."
So Osaka is paying $204 Mil for 40% of 125 million boe.
If 6mcf equals 1 boe then 125 mil boe equals 750 bcf.
40% of 750 bcf equals 300 bcf.
300 bcf at $.70 mcf equals $210 million. So call it $.69 an mcf with $74 million up front.
This is likely the best comp we have. I think it is important to get it right.
Comments?