RE: SP now vs MC in Spring.2 Jan 2021 05:10
roasannan, and I did answer, I said it comes from my range of figures.
Why are you comparing established mature production in the North Sea to Wildcat middle of nowhere no infrastructure (Pc) CCOS values ? Of couse the North Sea has higher Pc values, there is infrastructure in place, there is political stability, there is ongoing production, there is no issue with licenses..........any discovery in the North Sea has very low levels to achieve to be commercially viable (and yet many dusters are drilled in the North Sea every year).
Do you appreciate that RKH Sea Lion discovery, after flow test, after being declared a significant discovery - only had an 80% Pc value applied...........and here we are, over a decade later, still not in production, still waiting for go ahead. Nobody is interested in high cost, stranded, offshore oil.
As some on here seem to know MATD, below were the Pc values for their past wells. The Pc values were higher for MATD as they dont have issues with getting production licenses (hahaha.......still waiting)........and its onshore, so without all the associated offshore cost.
https://i.ibb.co/DWd7f2g/MAT.jpg
The Pc values applied are very much up to interpretation. Generally any Broker worth their salt will show the Pg and Pc values in their reports..................if they hide the Pc value then it naturally follows the Pc value is very low and they dont want to advertise it. If a BPC ramper were to say that a 30 year production license will be given on a red carpet presentation while the people of the Bahamas get on their knees to salute BPC.........then a higher Pc value would be in effect.......as they would not discount all the risk associated with that. Within the Pc value lies nearly all the non technical risks..........
As is always said..... IMO, DYOR !!!
(But dont compare North Sea Pc figures with Wildcat middle of nowhere figures)
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