''Having also said that, for a company trading at 2 cents or so, it could easily jump three or four fold if they can prove up a billion barrels recoverable and someone wants to pay them a very generous 50 cents each given they are a pre-appraisal resource, in the middle of nowhere.''
I am intrigued
Armstrong just proved the resources up in the middle of now here and received a discounted price close to $3pb, for conventional. I say discounted as Oil search who paid for it have already confirmed they got it on the cheap. They still have to lay down pipe to Pump 1, probably 40 miles?
The unconventional is a
''One off, never been seen before with both good and bad attributes''
Tempting to measure value against what is known, yet it remains an unknown. The purpose of chasing the vapour phase is to get the characteristics of a conventional style flow. How can you value the unknown until it is a proven, commercial reserve. In this case right on the TAPS door step, 12 miles from Pump 2. Gravel pads along side the Dalton will ensure good communications with the road and TAPS. hardly in the middle of no where. I think 50c is pessimistic if what they are aiming for is achieved.
Have you checked the results from IW1? You may find it helpful. More helpful, will be working a solution to IW2!!
Calenus? are in the middle of no where they have to lay down over $800m of pipeline connection to pump 1
Should the Alaskan wilderness get opened. I see that a TAPS 2 will be needed in addition to the gas TAP they are currently talking about.
88E Price at posting:
2.2¢ Sentiment: Buy Disclosure: Held
(20min delay)
