07-27-2016, 12:30 PM
'petrengr1' pid='74960' dateline='<a href="tel:1469585 Wrote:
'Stavros' pid='74958' dateline='<a href="tel:1469584 Wrote:XOM will always get the full suite of payments from TOTAL over the years by acquiring IOC. We are requesting XOM to be "fair" and share those payments with us. So saying it costs XOM nothing to share those future payments with us is not correct.The payments they will share with us are far into the future. They will have value when paid but the NPV to Exxon is very low. As was mentioned by Phil several times.
a comment on RF, - if GLJ used 87% for C2 like they did in 2009, that is a very likely reason for the major difference between GCA/NSAI and GLJ. Most appraisers would use a 50-70% RF for C2 or P2 in an unknown, low k reservoir.
Water drive in a low k carbonate could be bad, and if they assumed that it would push the RF to a lower number - 50%?. With fractures and water you must worry - Beaer River Field in Canada is a case in point.