Of course you are correct regarding different margins for different fields and jurisdictions. As you know from Roc's annual report that the gross profit per barrel ranges from about US$ 30 for Zhao Dong to $55 for Cliff head. Beibu is at US$ 49. I think it is safe to assume that the Malaysia PSC lays somewhere between those ranges.
If you use the standard 6 mcf per 1 barrel oil ratio then the PNG gas gross margin per MCF will need to range between US$ 5 ( Zhao Dong) and US$ 8.16 ( Beibu) to provide a similar return on a BOE basis.
One more detail in regards to the HZN stated 2C PNG reserves, it is not clear in the merger documentation if they have been reduced to incorporate the PNG State Participation Nominee which is at the 22.5 % level.
Cheers
Dan
ROC Price at posting:
48.0¢ Sentiment: LT Buy Disclosure: Held
