Anyone who uses $100 per barrel for worth is completely ignoring the costs of lifting,processing and transport. They are also neglecting the capital expense of development.While they did sell their product from the EWT, they definitely did not make a profit. The delay has been huge, years and years away from what they projected. What is holding them back except for the uncertainty of profit ?
With just some of the challenges facing Statoil, Bentley's confirmed reserves (practically right on its own doorstep so to speak), must be worth a significant amount IMO.
If Statoil fails to acquire or find and develop additional reserves, Statoil’s reserves and production will decline materially from their current levels.
Successful implementation of Statoil's group strategy is critically dependent on sustaining Statoil’s long-term reserve replacement. If upstream resources are not progressed to proved reserves in a timely manner, Statoil will be unable to sustain the long-term replacement of reserves.
Exploratory drilling involves numerous risks, including the risk that Statoil will encounter no commercially productive oil or natural gas reservoirs.
This could materially adversely affect Statoil’s results. Statoil is exploring or considering exploring in various geographical areas, including the Norwegian Sea, the Barents Sea and onshore and offshore in the USA. In some of these regions, environmental conditions are challenging and costs can be high.
Statoil's performance could be impeded if competitors were to develop or ACQUIRE INTELLECTUAL PROPERTY RIGHTS TO TECHNOLOGY that Statoil requires or if Statoil's innovation were to lag behind the industry.
with 257 mb of confirmed reserves, some of which has already sold for over $100 per barrel, then 257 million barrels would be worth $25.7 billion dollars.
Factor in the estimated total boe of over 900 mb (with a potential target recovery rate of 50% over the life of the field). Therefore it's within the realms of possibility that around 450 mb may eventually be recovered.
Of course the oil price will fluctuate and could be 50% less meaning 257 mb would achieve around $12.75 billion. But of course it will also rise at certain points...
What would this be worth to any company who could afford the development costs?
So we are where we are at the moment with regards to the sp, but the big question is what are we worth on FDP submission, and what will be worth on Decc approval. Chat on iii saying any buyout of xcite on Decc approval will be multiples from where we are now. Is it better for any buyer to delve in now or wait and pay significantly more on decc sign off ? Would personally hope for a minimum of £1 on a submitted FDP and 150-200p on approval. What do people think it"ll be before and after???
"" .... Several key oil and gas developments in Norway will cost much more than earlier expected and fields with approved development plans are now seen 10 percent more expensive than originally planned, the oil and energy ministry said on Wednesday..... ""
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