RE: Seismic value24 Sep 2018 11:02
Hey Dixie, that was also my understanding. The £1.50 per TCF was based on the recoverable resources.
So 377Bcf x £1.50 = 56-57p currently.
Also TE9 doesn't prove up the whole seismic. Unless I've misunderstood (and i hope tomorrow it becomes clearer when we go to the deep dive), it improves the chances of the seismic for the same type of leads of the same play type.
TE-10 targets a completely different geological formation, therefore i don't think we can say TE-9 proves up the seismic for TE-10, and likewise for whatever TE-11 and or 12 could target in the future.
The basin model currently shows the bounded numbers that are likely to be discovered.
The seismic then helps identify potential leads for actual resources, those leads become better COS once one has been successfully drilled.
Then once the field plan for those leads has been done and a GSA for that field and you're almost at another FID, the value gets to about 90% for those reserves. Which is where we are TE-5.
Of course, everything is open to debate until we get our final offer :)