Selling Price16 May 2018 14:24
Some of the valuations for what we might sell for seem a little on the low side. I realise when we sold to Lukoil oil was top dollar but KH had to do a deal as we had no money left so was bargaining from a weak position.
Could anyone correct me on the following maths as I know I've taken a few guesses.
If gas is worth $5 per thousand cubic feet, then three trillion cubic feet is worth 15 billion dollars. Our 25% share should be worth $3.75 billion.
If we find 3 x the oil, then 3 x 95 million is 285 million barrels at say $70 a barrel. That is say $20 billion and our share would be $5 billion.
So $8.75 billion ÷ 326 million shares = $26.84 per share. Even if it took 50% to get out of ground, it is still $13.42 per share?
I realise we will get nothing like that but surely we should get more that 90 odd pence?
Please feel free to correct me. I realise this is probably hugely flawed.
I also cannot believe COC would risk the amount of money they have put in to triple their investment.