I think booking of current KN1 reserves and future reserve calculations are interesting for us all, especially potential new investors.
I agree though Irish, that until the 28 bcf from Kn1 get booked as commercial reserves, ie COD & commercial production, the market will still see aminex as unable to take gas to market and hence the lack of excitement in the SP and the assets
NT2 drill and NT3 have massive transformational potential for Aminex, but we need the first well, KN1 to be booked into production, I fear we can drill all we like without much impact to the SP until KN1 is booked into production, this then gives credibility to Ruvuma and belief in being able to take gas from the ground into booked reserves and real income.
Never mind about booking future reserves,what I want to see is our GSA put into action,never mind this testing rubbish and getting paid undisclosed amounts three months later.We need to be working on pro forma invoice for Gas supplied,this 1 million a month income is well due.
I make the total contingent/prospective BCF at ~ 8000 with a USD sales price of ~ $24.5b. Clearly we cannot make any direct linkage between $24.5b and prospective MC for AEX.
Could someone tell me what the position is w.r.t. recognition/booking of reserves and impact on the balance sheet. I know in mining, companies can't carry a value for resource/reserve so the prospective value is not directly recognised in the financials no matter what the size of the estate.
In oil/gas, proven reserves can be booked but the valuation is dependent on a variety of factors such as production to reserve ratios, technology, other risk factors, etc.
...another question, should I divide by ten the 571p?.....57.1p???????????? I'm a bit hyperactive tonight! twitchy nose, ears a bit sensitive, need to borrow Mouse's exercise wheel.....now where's that cheese......scuttles off......
I must admit to have become quite excited reading the recent attempts at valuations but something at the back of my mind says that I just need to wait to see what the drilling results turn up. Obviously we are all hoping for the best but until we know there is a lot of speculation involved. So some days I'm in a "this time next year we'll all be millionaires frame of mind" and other days it's "how many days before we start". All is starting to point towards an exciting spring and first half of next year. GLA
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