02-18-2014, 04:31 PM
'ltinvest' pid='37573' datel Wrote:Mike, you are usually quite astute. That is like asking why did the market assign any value to E/A before the Total deal? I agree completely, the market is Giving no value to these prospects at this time. Of course, the market is currently significantly undervaluing everything IOC related. But as the Total deal closes and gas at the highest tranche & above is valued at $1.29 or more....there is a clear and distinct route to monetization for newly discovered gas. Hence, it's value to IOC and shareholders is significant. PRL 15 is just a starting point for value creation.
Agreed. Just making the point that the process of creating value that is reflected in the PPS requires more than drilling results and estimates from IOC. Namely a SPA, recertification, etc. with subsequent payments and/or cash flow. The value to E/A before the Total deal was based on the story whereas future discoveries and value will be on execution with defined metrics. Just wondering how the new wells outside PRL 15 will be valued without a deal for those specific resources in place? A lag between drilling results on new discoveries and PPS upside seems expected. But with Hession and crew bringing so many parties to the table hopefully not too long.