AOK 0.00% 0.3¢ australian oil company limited.

please explain...

  1. Dis
    3,741 Posts.
    Can someone please explain the following. Are we comparing apples and oranges?

    Today RFE announced their new reserve report:
    1P Reserves = 14 mmboe.
    NPV 10 = $196 million

    Comment by RFE: Group 1P net present value has increased to US$196.3 million (previously US$89.2 million), which is expected to underpin a significant increase in the Company’s borrowing base and provide funding flexibility.



    On March 19th 2013, AOK announce their latest reserve report:
    1P Reserves = 7.6 mmboe.
    PV10% Future Net revenues = $198 million


    Is the "NPV10" quoted by RFE the same as the "PV10% Future Net revenues" quoted by AOK?

    If so, on that basis AOK's reserves are worth about twice as much (on a BOE basis). Also if NPV is the basis for RBL facilities, then AOK should get a massive facility relative to is market capital! ???

    Quoting from RFE announcement July 1st (1p PV10 = US$144 million):
    "The Facility has been increased to US$100 million with
    the borrowing base increased to US$45 million. The
    increased borrowing base reflects a significant uplift in
    the present value of the Company’s proved reserves as
    at April 30, 2013."

 
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