Some other things to think about in relation to metrics:The...

Some other things to think about in relation to metrics:

The earlier in a company's resource to reserve upgrade program, the more percentage upside there is. What Majors are really buying is the reserves, PLUS the contingent resource upside. So, the earlier on it is, the more the potential risk that CR's are not upgraded to reserves, but also the greater the reserves upside.

So a 3P metric for a company just ramping up should be higher than a metric for a company that has already converted much of their CR to reserves (like APLNG). Because there is more reserves growth upside.

BOW in one of their presos has pointed out how the experience of CSG in QLD has been that a large percentage of the contingent resources DO end up as reserves. Not all, but heading towards 75%. Just add large amounts of time, money and drilling. CSG is far more deterministic than conventional drilling, where contingent resources often remained forever mired in that contingent status.

No wonder the Majors like to get in early to acquire CSG developers. They only (want to) pay you for what you have proven to date, but get the contingent resource (the future reserves upside) for free...

How opportunistic. :)

Yaq