How much are IOC's condensates worth?

[jft310]

A quick Google shows this article from 10/2012

when Canadian condensate was $90 a barrel. I'm hearing the IOC condensate would be going for $100 if on sale now.

October 1, 2012

Condensate “liquid gold” for gas producers, thanks to booming oilsands

By Pat Roche and Elsie Ross

In the non-oilsands sectors of the western Canadian oilpatch, various commodities or strategies have fallen in and out of favour over the years, depending on the economics. Coalbed methane, tight gas and natural gas in general have each been in vogue at certain points in the past dozen years. Light tight oil, conventional heavy oil and liquids-rich gas have all been in fashion since natural gas prices tanked.

.

At last week’s Peters & Co. Limited investor conference in Toronto, Peyto Exploration & Development Corp. president Darren Gee exhibited a slide showing the prices of key natural gas liquids (NGLs) based on Peyto’s monthly average realized prices in the second quarter, after pipeline/fractionation/transportation costs.

Topping the list was condensate at $90 per barrel. At the other end of the NGL price spectrum was ethane at $6 per barrel, or $2.10 per gigajoule in gas equivalency, which wasn’t much better than an average Alberta dry-gas price of $1.74 per gigajoule during the quarter

[jft310]

Answer $13.5 Billion. Thats why I make people remember the condensates which are in the Exxon deal. More than the NG????

[Movieguy]

Answer $13.5 Billion. Thats why I make people remember the condensates which are in the Exxon deal. More than the NG????

Where is the math that gets a worth of $13.5 billion?

[Petro2458]

16 bbl/mmcfg yield...could be higher. $100/bbl for 150 mmbl is a big number. Works out to be about 10% of the total revenue.

600 mmcfg/day...$3.1b/yr gross revenue
9,765 blpd...$.328b/yr gross revenue

[Petro2458]

I assume $117 mm/year in opex..I suspect that the incremental operating expense of 1 more train at PNG is substantially lower than this.

[Palm]

Liquid gold. I like the sound of that. And I agree with JFT. Many times people compare IOC's resource with Aussie CSG which is DRY as the bone in Tree's nose. Tremendous value in those liquids and is why wells in the US are capped if its just gas whereas if its wet, they produce the gas or just flare it because the liquids make the big difference here. In Asia they want both the LNG and the liquids as fast as they can get them.

[CesiumFormate]

Answer $13.5 Billion. Thats why I make people remember the condensates which are in the Exxon deal. More than the NG????

The PV (Present Value) would be $2.4B assuming a perpetituity for a 15% IRR.

CF

[jft310]

CF
Exxon involved lowers the risk.
The point is those liquids , exact amount to be determined are quite valuable. It's not just the NG , those liquids are worth billions by them selves